Mpumalanga Business 2019/20 edition

The 2019/20 edition of Mpumalanga Business is the tenth issue of this highly successful publication that since its launch in 2008 has established itself as the premier business and investment guide for the province. In addition to the regular articles providing insight into each of the key economic sectors of the province, there is a special focus on the new life given to an established site at the Highveld Industrial Park and the Nkomazi Special Economic Zone (NSEZ). A useful article on what incentives are available to investors is included, and the Mpumalanga Economic Growth Agency (MEGA) gives investors some perspectives on what is available in the province. Mpumalanga has several investment and business opportunities in a wide range of sectors. Updated information on Mpumalanga is also available through our monthly e-newsletter, which you can subscribe to online at www.gan.co.za, in addition to our complementary business-to-business titles that cover all nine provinces as well as our flagship South African Business title. Chris Whales Publisher, Global Africa Network Media

The 2019/20 edition of Mpumalanga Business is the tenth issue of this highly successful publication that since its launch in 2008 has established itself as the premier business and investment guide for the province.

In addition to the regular articles providing insight into each of the key economic sectors of the province, there is a special focus on the new life given to an established site at the Highveld Industrial Park and the Nkomazi Special Economic Zone (NSEZ). A useful article on what incentives are available to investors is included, and the Mpumalanga Economic Growth Agency (MEGA) gives investors some perspectives on what is available in the province.

Mpumalanga has several investment and business opportunities in a wide range of sectors.

Updated information on Mpumalanga is also available through our monthly e-newsletter, which you can subscribe to online at www.gan.co.za, in addition to our complementary business-to-business titles that cover all nine provinces as well as our flagship South African Business title.

Chris Whales
Publisher, Global Africa Network Media


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<strong><strong>20</strong>19</strong>/<strong>20</strong> EDITION<br />




Oil and gas<br />

Gas exploration and gas conversion are growing trends.<br />


Manufacturing<br />

Highveld steel works lives again as an industrial park.<br />


SECTOR<br />

ONLINE<br />


row the provincial economy of<br />

ectors. Beneficiation of timber<br />

iomass are two obvious areas<br />

n a sector that already boasts a<br />

<strong>Mpumalanga</strong>’s Gross Domestic<br />

akes up 12% of South Africa’s<br />

ducts sector contributes about<br />

ses logging, saw-milling, wood<br />

cture. Pulp and paper are the<br />

, wood chips and wattle extract.<br />

tage of sawn timber with very<br />

n recent times due to concerns<br />

ber in South Africa is used in<br />

e and topography for forests.<br />

f the industry, but commercial<br />

uth along the Swaziland border.<br />

, with 4% of that being natural<br />

er in total hectares under forest<br />

C<br />

reative thinking kicked in when Highveld Steel’s troubles<br />

reached the tipping point in <strong>20</strong>15. Aside from the business SECTOR INSIGHT<br />

rescue process, which has allowed some production to restart,<br />

there is some irony in the that fact | that the WWW.MPUMALANGABUSINESS.CO.ZA<br />

1 000ha<br />

| are in food WWW.LIMPOPOBUSINESS.CO.ZA<br />

and<br />

Most jobs in manufacturing<br />


York Timbers celebrated its<br />

centenary in <strong>20</strong>16. International chemicals and energy company Sasol has several large<br />

• An Agriculture and plants in <strong>Mpumalanga</strong> and plays a major role in the economy of the<br />

Forestry Technology Park province. The company’s most recent upgrade of two polypropylene<br />

is planned.<br />

manufacturing plants at Secunda has been completed at a cost of<br />

R1.1-billion.<br />

This follows shortly after a stabilisation scheme valued at R1.3-billion<br />

and is part of the global giant’s ongoing investment in its facilities.<br />

Development and Tourism More than 900 jobs were created for the duration of the upgrading<br />

project, which took place while production continued at the plant.<br />

(DEDET) will spend R3.9-million<br />

Polypropylene is used in packaging, automotive components and<br />

in the <strong>20</strong>17/18 year on textiles statutory<br />

compliance for this park In and <strong>Mpumalanga</strong>, Sasol’s assets are Sasol Mining, Secunda Synfuels<br />

and demand is growing every year.<br />

other parks, which will include Operations, an Secunda Chemicals Operations and Sasol Energy.<br />

Products manufactured at the Secunda complex include petroleum,<br />

paraffin, jet fuel, creosote, bitumen, diesel and lubricants. Gas by-<br />

incubation element for SMEs.<br />

The <strong>Mpumalanga</strong> Economic products include oxygen and acetylene, liquefied petroleum gas (LPG),<br />

Growth and Development and Path hydrogen and nitrogen. The primary feedstock for synthetic-fuel<br />

production is coal, and the plant is located in the heart of <strong>Mpumalanga</strong>’s<br />

(MEGDP) intends to expand the<br />

coalfield region.<br />

industrial base of the provincial<br />

economy, with a focus on beneficiation,<br />

agri-processing and<br />

MPUMALANGA BUSINESS <strong>20</strong>17/18<br />

42<br />

value<br />

property has been re-purposed as a multi-purpose site for industry and<br />

commerce. Called the Highveld Industrial Park, this project has had the<br />

effect of promoting a diversity of manufacturing enterprises, something<br />

which has been a priority for economic planners for many years.<br />

SECTOR INSIGHT Stockpiles of coal and vanadium are being sold off, but two iron<br />

plants and a steel plant offer fully-equipped metallurgical and steelmaking<br />

record facilities, supported by environmental monitoring services and<br />

Sasol produced a<br />

volume of synfuel in metallurgical <strong>20</strong>17. and chemical laboratories.<br />

• Tosaco Energy is searching<br />

for gas at three sites.<br />

The private rail siding gives the park good connections and the fact<br />

that Sasol can supply methane-rich natural gas and that two gas producers<br />

(Air Liquide and African Oxygen) have plants in the park makes<br />

for an advantageous setting for industrial enterprise. The Eskom grid<br />

supplies 350mVA power supply directly. The park is near eMalahleni,<br />

next to the N4 highway and close to the N12 highway.<br />

The Sasol Synfuels refinery,<br />

In early <strong>20</strong>18, the park had 21 tenants and many enquiries. Tenants<br />

which forms part of the include Sasol a complex<br />

at Secunda, is the and only Training com-<br />

Authority (CETA) and a mining equipment refurbishment<br />

training centre funded by the Construction Sector Education<br />

company. An agricultural college is planned.<br />

mercial coal-to-liquid fuel plant in<br />

The structural mill of Evraz Highveld Steel in Witbank was officially<br />

the world, and forms relaunched a vital part in June <strong>20</strong>17 after ArcelorMittal South Africa signed a<br />

of South Africa’s oil and contract gas to sector.<br />

In July <strong>20</strong>17 Sasol announced<br />

supply blooms and MPUMALANGA<br />

slabs for the mill to make into heavy<br />

that the synfuel plant produced MPUMALANGA a BUSINESS <strong>20</strong>18/19<br />

48<br />

record annual output.<br />

Sasol is spending about<br />

R12-billion on expanding the<br />

structural steel. Evraz Highveld<br />

went into business rescue in<br />

<strong>20</strong>15. The contract is for two<br />

years with an option to renew<br />

for another year. Alternately,<br />

ArcelorMittal may buy the mill<br />

after the two years.<br />

The presence of Ferrometals<br />

means that <strong>Mpumalanga</strong> is still<br />

an important place for metals<br />

and machinery manufacturing,<br />

but the turbulence in the steel<br />

sector has reminded everyone of<br />

the need to diversify.<br />

The chemicals and liquid<br />

fluids complex of Sasol at<br />

Secunda is a vital component of<br />

the province of <strong>Mpumalanga</strong>’s<br />

manufacturing sector. The


The core of Sasol’s Southern African Operations<br />

Sasol is an international integrated chemicals and energy company. Through our<br />

talented people, we use selected technologies to safely and sustainably source,<br />

produce and market chemical and energy products competitively to create superior<br />

value for our customers, shareholders and other stakeholders.<br />

The company's Secunda Operations are the core of Sasol's Southern African Operations,<br />

producing a wide range of petroleum products including diesel, petrol and jet fuel, as well<br />

as chemical products which include ethylene, propylene and ammonia value chains.<br />

The operations contribute to job creation, sustainable development and security of supply<br />

in chemicals and energy. The site is host to the following entities: Sasol Mining, Secunda<br />

Synfuels Operations, Secunda Chemicals Operations, Sasol Energy and Group Technology.<br />

Sasol Mining operates ve coal mines in <strong>Mpumalanga</strong> that supply feedstock for the<br />

Secunda Synfuels Operations complex. The coal is mainly used as gasication feedstock<br />

and to generate electricity. Sasol Mining also exports coal from its Twistdraai Export Plant<br />

to international power generation customers. As some of these mines are approaching the<br />

end of their useful lives, new developments are underway to ensure continued supply<br />

through the company's Mine replacement programme.<br />

Secunda Synfuels Operations operates the world's largest coal-to-liquid manufacturing<br />

facility, producing synthesis gas (syngas) through coal gasication and natural gas<br />

reforming. The operating hub uses proprietary technology to convert syngas into<br />

synthetic fuel components, pipeline gas and feedstock for producing chemicals.<br />

Secunda Chemicals Operations is a large-scale integrated chemical product<br />

manufacturing facility that produces and adds further value to the Sasol chemicals value<br />

chains. Secunda Chemicals Operations also provides Sites Services, Infrastructure<br />

Maintenance and Product Logistics Services for the Secunda site.<br />

The Energy <strong>Business</strong> is key to Sasol's growth aspirations inside and outside South Africa,<br />

manages the marketing and sales of all Sasol’s oil, gas and electricity products in Southern<br />

Africa.<br />

Group Technology manages Sasol's research and development, technology innovation<br />

and management, engineering services and capital project management portfolios. The<br />

function contributes towards Sasol's fuels and chemicals businesses to maintain growth<br />

and sustainability through appropriate technological solutions and services.<br />

As an active corporate citizen, Sasol invests meaningfully in communities close to its<br />

operations with the main objective of sustainably contributing to the broader socioeconomic<br />

development of the <strong>Mpumalanga</strong> province as well as South Africa.

For more information visit www.sasol.com.



<strong>Mpumalanga</strong> <strong>Business</strong> <strong><strong>20</strong>19</strong>/<strong>20</strong> Edition.<br />

Introduction<br />

Foreword6<br />

A unique guide to business and investment in <strong>Mpumalanga</strong>.<br />

<strong>Mpumalanga</strong> Economic Growth Agency (MEGA) 7<br />

Driving trade and investment in <strong>Mpumalanga</strong>.<br />

Special features<br />

Regional overview 8<br />

Diversifying and growing the manufacturing sector are<br />

priorities for the region.<br />

Investment incentives 12<br />

A range of incentives are available to investors, companies,<br />

entrepreneurs and co-operatives.<br />

Industrial parks and Special Economic Zones 18<br />

Dedicated zones and good rates are encouraging<br />

manufacturing.<br />

Economic sectors<br />

Agriculture and agri-processing 28<br />

A second agri-hub will be completed this year.<br />

Forestry and paper 30<br />

Sawmills are generating energy.<br />

Oil and gas 34<br />

Sasol is a world leader in liquid fuels.<br />

Water<br />

A new dam is to be built on the Crocodile River.<br />

35<br />

MPUMALANGA BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />


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Terms or otherwise, and Conditions is coincidental. apply. Handles/usernames are illustrative only. Any similarity to any other handle/username on any platform,<br />

Terms or otherwise, and Conditions is coincidental. apply. Handles/usernames are illustrative only. Any similarity to any other handle/username on any platform,<br />

or otherwise, is coincidental.<br />

Terms and Conditions apply. Handles/usernames are illustrative only. Any similarity to any other handle/username on any platform,<br />

or otherwise, is coincidental.


Mining40<br />

Sasol’s R5.6-billion Impumelelo Colliery is producing coal.<br />

Manufacturing44<br />

Government wants to promote township<br />

and rural manufacturing.<br />

Transport and logistics 46<br />

The first phase of the Moloto Corridor is complete.<br />

Tourism48<br />

The <strong>Mpumalanga</strong> Liberation Route has been launched.<br />

Banking and financial services 50<br />

Digital banking is on the rise.<br />

Development finance and SMME support 52<br />

Many small businesses operate in trade and accommodation.<br />

Education and training 54<br />

A new boarding school will assist rural children.<br />

References<br />

Sector contents 26<br />

Index56<br />

<br />


Credit: Ugurhan/iStock by Getty Images. Tourism is a key sector<br />

in the economy of <strong>Mpumalanga</strong>. The Kruger National Park<br />

is a vital asset in an offering that includes adventure tourism,<br />

game viewing, heritage and natural history. Numbers of local<br />

and international visitors are rising steadily on the back of new<br />

products being rolled out in the province.<br />

MPUMALANGA BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong> 4


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<strong>Mpumalanga</strong> <strong>Business</strong><br />

A unique guide to business, investment and tourism<br />

in <strong>Mpumalanga</strong>.<br />

The <strong><strong>20</strong>19</strong>/<strong>20</strong> <strong>edition</strong> of <strong>Mpumalanga</strong> <strong>Business</strong> is the tenth issue<br />

of this highly successful publication that since its launch<br />

in <strong>20</strong>08 has established itself as the premier business and<br />

investment guide for the province.<br />

In addition to the regular articles providing insight into each of the<br />

key economic sectors of the province, there is a special focus on the<br />

new life given to an established site at the Highveld Industrial Park and<br />

the Nkomazi Special Economic Zone (NSEZ). A useful article on what<br />

incentives are available to investors is included, and the <strong>Mpumalanga</strong><br />

Economic Growth Agency (MEGA) gives investors some perspectives<br />

on what is available in the province.<br />

<strong>Mpumalanga</strong> has several investment and business opportunities<br />

in a wide range of sectors.<br />

To complement the extensive local, national and international<br />

distribution of the print <strong>edition</strong>, the full content can also be viewed<br />

online at www.globalafricanetwork.com. Updated information on<br />

<strong>Mpumalanga</strong> is also available through our monthly e-newsletter,<br />

which you can subscribe to online at www.gan.co.za, in addition to<br />

our complementary business-to-business titles that cover all nine<br />

provinces as well as our flagship South African <strong>Business</strong> title.<br />

Chris Whales<br />

Publisher, Global Africa Network Media • chris@gan.co.za<br />


Publisher: Chris Whales<br />

Publishing director: Robert Arendse<br />

Editor: John Young<br />

Online editor: Christoff Scholtz<br />

Art director: Brent Meder<br />

Design: Tyra Martin<br />

Production: Lizel Olivier<br />

Ad sales: Gavin van der Merwe,<br />

Sam Oliver, Gabriel Venter,<br />

Vanessa Wallace, Jeremy Petersen,<br />

Shiko Diala and Sandile Koni.<br />

Managing director: Clive During<br />

Administration & accounts:<br />

Charlene Steynberg and<br />

Natalie Koopman<br />

Distribution & circulation<br />

Manager: Edward MacDonald<br />

Printing: FA Print<br />


<strong>Mpumalanga</strong> <strong>Business</strong> is distributed internationally on outgoing<br />

and incoming trade missions; through the <strong>Mpumalanga</strong><br />

Economic Growth Agency (MEGA); at top national and international<br />

events; through the offices of foreign representatives in<br />

South Africa; as well as nationally and regionally via chambers<br />

of commerce, tourism offices, trade and investment agencies,<br />

airport lounges, provincial government departments, municipalities<br />

and companies.<br />

Member of the Audit Bureau of Circulations<br />


Global Africa Network Media (Pty) Ltd<br />

Company Registration No: <strong>20</strong>04/004982/07<br />

Directors: Clive During, Chris Whales<br />

Physical address: 28 Main Road, Rondebosch 7700<br />

Postal address: PO Box 292, Newlands 7701<br />

Tel: +27 21 657 6<strong>20</strong>0 | Fax: +27 21 674 6943<br />

Email: info@gan.co.za | Website: www.gan.co.za<br />

ISSN 2222-3274<br />

COPYRIGHT | <strong>Mpumalanga</strong> <strong>Business</strong> is an independent publication<br />

published by Global Africa Network Media (Pty) Ltd. Full copyright to<br />

the publication vests with Global Africa Network Media (Pty) Ltd. No part<br />

of the publication may be reproduced in any form without the written<br />

permission of Global Africa Network Media (Pty) Ltd.<br />

PHOTO CREDITS | Highveld Industrial Park, iStock by Getty Images,<br />

SAB Foundation, Sappi, Sasol, Seda.<br />

DISCLAIMER | While the publisher, Global Africa Network Media (Pty)<br />

Ltd, has used all reasonable efforts to ensure that the information contained<br />

in <strong>Mpumalanga</strong> <strong>Business</strong> is accurate and up-to-date, the publishers<br />

make no representations as to the accuracy, quality, timeliness, or<br />

completeness of the information. Global Africa Network will not accept<br />

responsibility for any loss or damage suffered as a result of the use of or<br />

any reliance placed on such information.<br />

MPUMALANGA BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />


<strong>Mpumalanga</strong>: place<br />

of the rising sun<br />


<strong>Mpumalanga</strong>, which is in the northeast<br />

of South Africa and borders<br />

Mozambique and eSwatini, offers a<br />

strategic location to investors and<br />

export-oriented businesses.<br />

The <strong>Mpumalanga</strong> Economic Growth Agency –<br />

MEGA – is the official Economic Development Agency<br />

for the provincial government of <strong>Mpumalanga</strong>.<br />

MEGA offers a range of services to assist investors and<br />

exporters to take advantage of the many trade and<br />

investment opportunities in <strong>Mpumalanga</strong> Province.<br />

The provincial economy is highly diverse, with<br />

significant activity in mining, agriculture, stainlesssteel<br />

production, petrochemicals, pulp and paper,<br />

manufacturing and tourism. <strong>Mpumalanga</strong>’s position<br />

and resources make it a valuable transport and<br />

logistics hub.<br />

The <strong>Mpumalanga</strong> Economic Growth Agency<br />

(MEGA) facilitates investment in the province and<br />

is always keen to talk to potential investors.<br />

Investment opportunities<br />

The recently designated Nkomazi Special<br />

Economic Zone (SEZ) is the first SEZ to be<br />

established in <strong>Mpumalanga</strong> Province. Located in the<br />

town of Komatipoort, adjacent to the border with<br />

Mozambique, the Nkomazi SEZ is to be developed as<br />

an agro-processing hub, supported by logistics and<br />

other related international trade services. The Nkomazi<br />

SEZ, though a generous tax incentive package, will<br />

seek to maximise the participation and development<br />

of local agriculture and small and medium-sized<br />

enterprises throughout the value chain – from<br />

primary agriculture to the production of high-value<br />

end products for export.<br />

The Maputo Development Corridor (MDC)<br />

is a Spatial Development Initiative linking Gauteng,<br />

<strong>Mpumalanga</strong>, the Nkomazi SEZ and the Port of Maputo<br />

in Mozambique. The MDC infrastructure supports<br />

logistics operations and gives investors and exporters<br />

good access to the markets of East Africa, the Indian<br />

Ocean rim and East Asia.<br />

The <strong>Mpumalanga</strong> International Fresh<br />

Produce Market (MIFPM) located in the provincial<br />

capital city of Mbombela is currently under<br />

construction. The MIFPM will serve farmers and<br />

customers from <strong>Mpumalanga</strong> Province, South Africa,<br />

regional markets in eSwatini and Mozambique<br />

and the global food market through the Port of<br />

Maputo. <strong>Mpumalanga</strong> Province is one of South<br />

Africa’s most productive and important agricultural<br />

regions and plays a key role in the export profile<br />

of South African fruit and nuts. The MIFPM offers<br />

excellent investment opportunities for international<br />

companies in the food industry.<br />

MEGA services<br />

We welcome potential investors in our province and<br />

go out of our way to make the process of starting a<br />

business easy. MEGA offers services in:<br />

• Foreign Trade Promotion<br />

• Investment Promotion<br />

• Funding<br />

• Property Management and Infrastructure<br />

Development.<br />

MEGA is focussed on customer needs and provides<br />

innovative solutions with a high level of service. We<br />

look forward to meeting you.<br />


Tel: +27 13 755 6328<br />

Fax: +27 13 755 1756<br />

Email: info@mega.gov.za<br />

Website: www.mega.gov.za<br />

7 MPUMALANGA BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>



Diversifying and growing the manufacturing sector are priorities.<br />

By John Young<br />

<strong>Mpumalanga</strong> is at the centre of power<br />

generation in South Africa, through<br />

its coal-fired power stations. Despite<br />

concerns about fossil fuels and their<br />

effect on the environment, coal is going to be<br />

around for the foreseeable future. The provincial<br />

government is looking beyond coal towards<br />

a renewable energy future, especially where<br />

projects can be tackled by small businesses. There<br />

might be opportunities in micro-hydro or rooftop<br />

solar projects that will help to reduce dependence<br />

on the national grid while simultaneously<br />

promoting SMMEs.<br />

As it happens, a number of coal mines are<br />

receiving new investments and Sasol has just<br />

launched the third of its replacement mines.<br />

A major concern for provincial planners<br />

is to diversify the economy and to grow the<br />

manufacturing sector. The <strong>Mpumalanga</strong><br />

Economic Growth and Development Path<br />

(MEGDP) identifies beneficiation, agri-processing<br />

and the development of value chains as priorities.<br />

Steel and associated manufacturing remains<br />

one of the province’s strong suits, but a number<br />

of initiatives are being pursued to promote<br />

beneficiation and other forms of manufacture<br />

through a clustering approach and through tax<br />

incentives in Special Economic Zones. These<br />

initiatives are covered in a separate article<br />

elsewhere in this publication.<br />

A R250-million Youth Development Fund is to<br />

be launched in <strong>Mpumalanga</strong>, aimed at township<br />

MPUMALANGA BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />



and rural businesses run by young people.<br />

The Provincial Government of <strong>Mpumalanga</strong> is<br />

looking to cooperate closely with some of the<br />

large companies in the province who actively<br />

support SMMEs through enterprise and supplier<br />

development programmes. The Premier has<br />

identified possible partners such as the Exxaro<br />

Enterprise Development Fund, the Anglo Zimele<br />

Development Fund (Youth Development Hub<br />

and the Youth Development Initiative), the Sasol<br />

Enterprise Development Fund, South32, Glencore<br />

and the South African Institute of Chartered<br />

Accountants (SAICA).<br />

Tourism is one of the brightest jewels in the<br />

crown of the <strong>Mpumalanga</strong> economy. International<br />

tourist arrivals rose from 1.5-million in <strong>20</strong>17 to<br />

1.6-million in <strong>20</strong>18. The <strong>Mpumalanga</strong> Tourism and<br />

Parks Agency (MTPA) has stepped up its marketing<br />

efforts with the result that domestic tourist arrivals<br />

also rose from 2.2-million in <strong>20</strong>17 to 2.9-million<br />

in <strong>20</strong>18. All of these tourists spent R13.1-billion,<br />

thus contributing significantly to the provincial<br />

economy.<br />

The Kruger National Park remains the<br />

province’s most visited asset but the decision by<br />

UNESCO to afford World Heritage Site status to the<br />

Makhonjwa Mountains near Barberton will boost<br />

geological tourism to the province and supports<br />

the efforts of the province to diversify its offering.<br />

Major projects to improve tourist experiences<br />

are underway at the Graskop Gorge (where a<br />

transparent lift takes tourists into the depths of the<br />

9<br />

MPUMALANGA BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


gorge), a skywalk is to be built at God’s Window<br />

and a cable car is planned for Three Rondavels.<br />

The international body’s decision has also<br />

had the effect of expanding the curriculum at<br />

the relatively new University of <strong>Mpumalanga</strong>. On<br />

the basis of the UNESCO ruling, UMP is offering<br />

geology as part of a BSc degree, to supplement<br />

existing courses in education, agriculture and<br />

hospitality.<br />

Several infrastructure investment projects in<br />

the tourism sector have been put forward by the<br />

<strong>Mpumalanga</strong> Economic Growth Agency (MEGA).<br />

To promote the province, the <strong>Mpumalanga</strong><br />

Tourism and Parks Agency regularly participates<br />

in IMEX events in Frankfurt and Las Vegas, Africa’s<br />

Travel Indaba and WTM Africa.<br />

Heritage and cultural tourism are in the<br />

spotlight because <strong>Mpumalanga</strong> is already a<br />

leader in nature reserves and parks. There is a<br />

special focus on BRICS countries and provincial<br />

authorities are investigating a tourism airlift route<br />

between Moscow and <strong>Mpumalanga</strong>. The TRILAND<br />

partnership with Eswatini and Mozambique is<br />

another avenue, as is the collaboration with<br />

KwaZulu-Natal, Eswatini, Mozambique and the<br />

Seychelles. The latter project is called east3ROUTE<br />

Tourism Initiative and proclaims “Experience,<br />

Adventure, Scenery and Trade” between the<br />

participating provinces and countries.<br />

<strong>Mpumalanga</strong> has rich and varied mineral<br />

resources and fertile soil that supports diverse<br />

farming operations.<br />

The province hosts large companies in the<br />

manufacturing sector, with internationally<br />

renowned firms such as Sasol (synthetic fuels and<br />

chemicals) and Xstrata (ferrochrome) having large<br />

operations in the province. Columbus Stainless in<br />

Middelburg is a major producer of stainless steel,<br />

while Middelburg Ferrochrome, Thos Begbie and<br />

the Nelspruit-based Manganese Metal Company<br />

are among other important heavy industrial<br />

companies.<br />

The province’s rich agricultural produce is<br />

used by companies such as McCain, Nestlé and<br />

PepsiCo and there are also pulp and paper plants<br />

(Sappi and Mondi), fertiliser facilities and textile<br />

manufacturing concerns. The decision by Sappi<br />

to start producing dissolving wood pulp at its<br />

Ngodwana Mill has significantly increased the<br />

manufacturing capacity of the province. York<br />

Timbers is a leading forestry company and the<br />

sugar mills and refinery of RCL Foods (formerly<br />

TSB Sugar) are large contributors to the provincial<br />

economy.<br />

Sasol, the integrated oil, gas and chemicals<br />

company, runs several plants at Secunda. Products<br />

manufactured at the complex include synthetic<br />

fuel, petroleum, paraffin, jet fuel, creosote, bitumen,<br />

diesel and lubricants. The primary feedstock for<br />

synthetic-fuel production is coal, and the plant is<br />

in the heart of <strong>Mpumalanga</strong>’s coalfields.<br />

More than 80% of South Africa’s coal is sourced<br />

in <strong>Mpumalanga</strong>, with the town of Emalahleni<br />

(Witbank) being the centre of the industry. Other<br />

minerals found in the province include gold,<br />

platinum group minerals, chromite, zinc, cobalt,<br />

copper, iron and manganese.<br />

The southern half of the eastern limb of the<br />

platinum-rich Bushveld Igneous Complex runs<br />

south towards the towns of Lydenburg and<br />

Machdoadorp. Deposits of chromite, magnetite<br />

and vanadium in this area are the basis of the<br />

ferro-alloy complex in Witbank-Middelburg and<br />

Lydenburg. Nkomati Mine is South Africa’s only<br />

pure nickel operation.<br />

Investments<br />

The biggest companies in <strong>Mpumalanga</strong>’s most<br />

significant sectors have been investing heavily in<br />

infrastructure and operations. Global energy and<br />

chemicals company Sasol regularly spends tens<br />

of millions on upgrades and improvements at its<br />

Secunda complex. The Sasol Synfuels refinery is<br />

the only commercial coal-to-liquid fuel plant in<br />

the world and constitutes a key component in<br />

South Africa’s oil and gas sector.<br />

Sasol Mining is also very active in the province:<br />

three of its projects are valued at more than<br />

R8-billion and the third and final mine in its<br />

replacement mine project was launched in <strong><strong>20</strong>19</strong>.<br />

Exxaro Resources is investing R3.8-billion in a new<br />

mine at Belfast.<br />

MPUMALANGA BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />



Another global giant, Sappi, has invested Differences in temperature and rainfall between<br />

heavily in the conversion of its massive Ngodwana the Highveld and Lowveld can be considerable.<br />

<strong>Mpumalanga</strong> Mill (pictured), and other has 40% companies of South in Africa’s the paper forestry One resources. of the fastest growing agricultural sectors<br />

and forestry field such as Mondi and York Timbers is macadamia nuts. SECTOR These are INSIGHT<br />

This fact presents an opportunity to exploit the sector’s<br />

cultivated in the<br />

make large contributions the province’s<br />

economic by-products growth.<br />

in the biomass-to-energy field. Lowveld and are exported in ever-growing<br />

The Focus on Forestry conference<br />

will target digital<br />

The Zebra Pellets plant in Sabie is to be<br />

volumes.<br />

converted<br />

The Nelspruit district in the Lowveld<br />

The restarting of the Evraz Highveld steel mill in is South Africa’s second biggest producer of<br />

by national utility Eskom into a torrefied pellet plant. The wood will solutions.<br />

<strong>20</strong>17 was particularly good news, after the company citrus fruit, while vegetables of all sorts do well<br />

be provided to the plant (owned by the Industrial Development<br />

went into business rescue two years before. in this area too.<br />

Corporation) and then heated without the use of oxygen (torrefied) in <strong><strong>20</strong>19</strong> by the Centre for the<br />

ArcelorMittal South Africa continued supplying Large parts of the province are in the so-called<br />

which<br />

feedstock<br />

creates<br />

to<br />

a coal-like<br />

the mill and<br />

product<br />

in <strong><strong>20</strong>19</strong><br />

without<br />

took up its<br />

the<br />

option<br />

carbon.<br />

Middleveld comprising<br />

Modernisation<br />

high-plateau<br />

of<br />

grasslands.<br />

Forestry<br />

Plans to purchase to develop the an mill. Agriculture The rest of and the Forestry mill complex Technology Forestry Park operations are Operations are found (CMO), in central the Institute and<br />

being property, drawn up the by rebranded the Provincial Highveld Government <strong>Business</strong> of Park, <strong>Mpumalanga</strong>. south-eastern The <strong>Mpumalanga</strong>, for Commercial but Forestry the heart Research of this<br />

<strong>Mpumalanga</strong> is now a thriving Economic mix Growth of engineering and Development concerns, Path important (MEGDP) industry (KZN is around University) Sabie in and the the east. Nelson The<br />

intends manufacturers, to expand the distributors industrial base and commercial<br />

of the provincial <strong>Mpumalanga</strong> economy, forestry Mandela sector University. is one of the most<br />

with enterprises a focus on trading beneficiation, in an established agri-processing area with and important value chain<br />

the country: Forestry 11% of accounts the total land for about area<br />

development. excellent infrastructure and logistics links.<br />

of <strong>Mpumalanga</strong> is 8% covered of <strong>Mpumalanga</strong>’s either by plantations gross or<br />

When forestry managers, contractor and forestry natural equipment forests. Large domestic sugar operations product. The are found sector<br />

suppliers gather at the biannual Focus on Forestry conference in the south-east in comprises of the province. logging, saw-milling,<br />

White<br />

Geography<br />

River in <strong><strong>20</strong>19</strong>, the theme will be “Bridging the digital The divide province wood has excellent product roads and and pulp railway and<br />

in the African forestry sector”.<br />

connections and paper is well manufacture. served by airports, Pulp and<br />

Sustainability<br />

The Drakensberg<br />

is a key<br />

escarpment<br />

area for<br />

sharply<br />

companies<br />

divides<br />

in<br />

the<br />

the forestry<br />

airstrips<br />

sector<br />

and heliports.<br />

paper<br />

The<br />

are<br />

Kruger<br />

the main<br />

<strong>Mpumalanga</strong><br />

exports,<br />

western grasslands at high altitude (Highveld) International Airport and Hoedspruit Airport are<br />

and advances in the Internet of Things and AI are being keenly along with sawn lumber, wood<br />

and the subtropical component to the east, the the province’s two main airports.<br />

monitored for ways to enhance margins in an environmentally chips and wattle extract. Most<br />

Lowveld. The central region of the province The Maputo Development Corridor is a<br />

sound way.<br />

sawn timber in South Africa is<br />

is mountainous, with dramatic landscapes transportation corridor comprising road, rail,<br />

The<br />

presenting<br />

conference,<br />

exciting<br />

which<br />

vistas<br />

also looks<br />

for<br />

at<br />

visitors.<br />

topics<br />

The<br />

such as<br />

border<br />

silviculture,<br />

posts, port<br />

used<br />

and<br />

in<br />

terminal<br />

the construction<br />

facilities, running<br />

sector.<br />

fire management Lebombo Mountains and forest rise in the engineering, east. alternates from between Pretoria in Gauteng <strong>Mpumalanga</strong> through <strong>Mpumalanga</strong> has the ideal to<br />

<strong>Mpumalanga</strong> The southern and KwaZulu-Natal and northern Highveld and will regions be jointly organised<br />

produce large quantities of field crops such as<br />

barley, soybeans, maize, grain and sorghum.<br />

MPUMALANGA BUSINESS <strong>20</strong>18/19<br />

38<br />

Potatoes also flourish in this area.<br />

Most of the province receives summer rainfall,<br />

often via thunderstorms. Frost is common on the<br />

Highveld but is almost absent in the subtropical<br />

regions where fruit, nuts and citrus thrive.<br />

the Port of Maputo climate in Mozambique. and topography The corridor for<br />

supports high volumes of cross-border freight<br />

services and aims to boost trade within and<br />

beyond the region. Industry and tourism benefit<br />

from the concentration of resources and ease<br />

of transportation. This international initiative<br />

emphasises <strong>Mpumalanga</strong>’s excellent location as<br />

a logistics and transport hub.<br />

11<br />

MPUMALANGA BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>

South African<br />

investment incentives<br />

The South African government, particularly the Department of Trade and Industry,<br />

has a range of incentives available to investors, existing companies,<br />

entrepreneurs and co-operatives across many sectors.<br />

South Africa wishes to diversify its economy<br />

and incentives are an important part of<br />

the strategy to attract investors to the<br />

country. The Department of Trade and<br />

Industry (the dti) is the lead agency in the incentives<br />

programme, which aims to encourage local and<br />

foreign investment into targeted economic sectors,<br />

but the Industrial Development Corporation<br />

(IDC) is the most influential funder of projects across<br />

South Africa.<br />

There a variety of incentives available and these<br />

incentives can broadly be categorised according to<br />

the stage of project development:<br />

• Conceptualisation of the project –<br />

including feasibility studies and research<br />

and development (grants for R&D and<br />

feasibility studies, THRIP, Stp, etc)<br />

• Capital expenditure – involving the creation<br />

or expansion of the productive capacity<br />

of businesses (MCEP, EIP, CIP, FIG, etc)<br />

• Competitiveness enhancement –<br />

involving the introduction of efficiencies<br />

and whetting the competitive edge of<br />

established companies and commercial<br />

or industrial sectors (BBSDP, EMIA,<br />

CTCIP, etc)<br />

MPUMALANGA BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong> 12


At Exxaro, we pride ourselves in recognising that our strength lies with our people - including our female employees -<br />

who are our greatest asset.<br />

We are steadfast in our quest to increase the inclusivity of women at all levels of our organisation, building o n the 42%<br />

women representation o n the Exxaro Resources Board and 33% females in top management.<br />



• Some of the incentives are sector-specific, for<br />

example the Aquaculture Development and<br />

Enhancement Programme (ADEP), Clothing<br />

and Textile Competitiveness Improvement<br />

Programme (CTCIP) and the Tourism Support<br />

Programme (TSP).<br />

Manufacturing<br />

Key components of the incentive programme are<br />

the Manufacturing Incentive Programme (MIP) and<br />

the Manufacturing Competitiveness Enhancement<br />

Programme (MCEP). The initial MCEP, launched in<br />

<strong>20</strong>12, was so successful that it was oversubscribed<br />

with almost 890 businesses receiving funding. A<br />

second phase of the programme was scheduled<br />

for launch in <strong>20</strong>16. The grants are not handouts<br />

as the funding covers a maximum of 50% of the<br />

cost of the investment, with the remainder to be<br />

sourced elsewhere.<br />

The Enterprise Investment Programme (EIP)<br />

makes targeted grants to stimulate and promote<br />

investment, BEE and employment creation in the<br />

manufacturing and tourism sectors. Aimed at smaller<br />

companies, the maximum grant is R30-million.<br />

Specific tax deductions are permissible for larger<br />

companies investing in the manufacturing sector<br />

under Section 12i of the Income Tax Act.<br />

Other incentives<br />

Other incentives available to investors and existing<br />

businesses in more than one sector include the:<br />

• Technology and Human Resources for Industry<br />

Programme (THRIP)<br />

• Support Programme for Industrial Innovation<br />

(SPII)<br />

• Black <strong>Business</strong> Supplier Development Programme<br />

(BBSDP), which is a cost-sharing grant offered to<br />

black-owned small enterprises<br />

• Critical Infrastructure Programme (CIP) that covers<br />

between 10% and 30% of the total development<br />

costs of qualifying infrastructure<br />

• Co-operative Incentive Scheme, which is a 90:10<br />

matching cash grant for registered primary<br />

co-operatives<br />

• Sector Specific Assistance Scheme, which is a<br />

reimbursable 80:<strong>20</strong> cost-sharing grant that can<br />

be applied for by export councils, joint action<br />

groups and industry associations.<br />

Incentives for SMMEs<br />

A lot of emphasis is placed on the potential role of<br />

small, medium and micro enterprises in job creation<br />

and a number of incentives are designed to promote<br />

the growth of these businesses. These include:<br />

• Small Medium Enterprise Development<br />

Programme (SMEDP)<br />

• Isivande Women’s Fund<br />

• Seda Technology Programme (Stp).<br />

• Seda is the Small Enterprise Development Agency,<br />

an agency of the Department of Small <strong>Business</strong><br />

Development that exists to promote SMMEs.<br />

Trade-related incentives<br />

The Export Marketing and Investment Assistance<br />

(EMIA) Scheme includes support for local businesses<br />

that wish to market their businesses internationally<br />

to potential importers and investors. The scheme<br />

offers financial assistance to South Africans travelling<br />

or exhibiting abroad as well as for inbound potential<br />

buyers of South African goods.<br />


Department of Trade and Industry:<br />

www.thedti.gov.za<br />

Industrial Development Corporation:<br />

www.idc.co.za<br />

<strong>Mpumalanga</strong> Economic Growth Agency:<br />

www.mega.gov.za<br />

Official South African government incentive<br />

schemes: www.investmentincentives.co.za<br />

MPUMALANGA BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />


Highveld Industrial Park<br />

Superb infrastructure on a well-located site is attracting tenants.<br />


over<br />

pace<br />

strial<br />

uare<br />

ty is<br />

ated<br />

are<br />

uding<br />

lime<br />

and<br />

ance.<br />

Following the closure of Evraz Highveld Steel<br />

d unfurnished accommodation; also suitable for functions and<br />

and Vanadium Limited and the retrenchment<br />

of 1,700 employees in February <strong>20</strong>16, Highveld<br />

rk?<br />

required a creative approach to save it from<br />

ower stations<br />

being demolished and sold as scrap. Highveld<br />

the N12<br />

Industrial Park, as it is now known, was developed from<br />

N4<br />

the erstwhile steelworks and has been regenerated as<br />

a multi-purpose site for industry and commerce and is<br />

today home to a diverse group of enterprises, including<br />

s on site transport, manufacturing and engineering companies.<br />

Highveld Industrial Park started with only four tenants<br />

m the Eskom in grid <strong>20</strong>16 and has gone from strength to strength. In<br />

ctly supplied August by Sasol<br />

<strong><strong>20</strong>19</strong>, it reached the 50-tenant mark, which was a<br />

ite purification proud moment for the Industrial Park, given the position<br />

services<br />

it was in less than four years ago. Highveld Industrial<br />

d Laboratory support services<br />

Park’s tenants currently employ over 1,000 people<br />

s<br />

and boasts a wide variety of companies from various<br />

ntrol<br />

industries, including a dragline bucket refurbishment<br />

al and Fire-fighting<br />

company and rail siding operators which transport coal<br />

and ore from one of the largest private sidings owned<br />

intment and view facilities available for rental.<br />

by Highveld, to Richards Bay and Maputo.<br />

ighveld Industrial NOVO Park: Energy recently launched a R130-million gas<br />

alpark.co.za/ compression facility at the Industrial Park, which is the<br />

only one of its kind in <strong>Mpumalanga</strong>. Highveld Industrial<br />

book.com/highveldindustrialpark/<br />

Park is also extremely proud of its ongoing and<br />

consistent support of SMMEs. By offering preferential<br />

din.com/company-beta/18156518/<br />

rates to developing enterprises it has assisted in<br />

shaping successful companies, ranging from recycling<br />

ube.com/channel/UCWXlGMO1n9UXYWDmnEGMsBA<br />

to fence installations.<br />

The park has a number of key assets that form the<br />

basis of its unique rental proposition that allows it to<br />

provide a holistic rental solution to its clients; these range<br />

from high-end administration offices and conference<br />

rooms to heavy industrial workshops that contain<br />

overhead cranes with capacities of up to 250 tons.<br />

Sasol Gas supplies piped methane-rich gas through<br />

its distribution network directly to the Park, Air Liquide<br />

and Afrox operate their gas plants in the Industrial Park,<br />

which makes the setting for an industrial park even<br />

more advantageous. The Park receives a direct supply<br />

of water from the local municipal dam and undertakes<br />

its own purification on-site. The Eskom grid supplies<br />

the Park directly with 350MVA power, which allows the<br />

Park to function independently of the local municipality,<br />

thus not burdening its infrastructure but still supporting<br />

industry within the municipal boundaries.<br />

Structural mill<br />

Highveld Structural Mill is currently the jewel in the crown<br />

of Highveld Industrial Park. It is Africa’s only producer of<br />

heavy structural steel, as well as railway lines. The mill<br />

was officially relaunched in June <strong>20</strong>17 after ArcelorMittal<br />

South Africa entered into a contract to supply blooms<br />

and slabs for the mill to roll into heavy structural steel.<br />

The contract was for a period of two years, with an<br />

option for ArcelorMittal to acquire the Structural Mill<br />

at the end of the period. On 31 July <strong><strong>20</strong>19</strong>, ArcelorMittal<br />

announced its intention to purchase the mill and a sale<br />

of business agreement was duly entered into, subject<br />

to certain conditions being met. This is a milestone, not<br />

only for Highveld Industrial Park, but for industry in South<br />

Africa, as it ensures that the country maintains its strategic<br />

steel manufacturing capability and supports jobs, while<br />

enabling export opportunities.<br />


Contact person: Andrea de Souza<br />

Physical address: Old Pretoria Road,<br />

Emalahleni,1035, South Africa<br />

Tel: +27 71 452 9678<br />

Email: andrea@hipark.co.za<br />

Website: www.highveldindustrialpark.co.za<br />

15 MPUMALANGA BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong> <strong>20</strong>17/18


Building a robust<br />

economy in<br />

<strong>Mpumalanga</strong><br />

Industrial Development Corporation Regional Manager Mashweu<br />

Matsiela explains how the IDC’s mandate helps to improve lives.<br />

Mashweu Matsiela<br />

What are the key goals of the IDC in <strong>Mpumalanga</strong>?<br />

In line with the IDC’s mandate, our goal is to provide financial and<br />

non-financial support to entrepreneurs, thereby creating jobs and empowering<br />

youth and women, as well as supporting black industrialists.<br />


Mr Mashweu Matsiela has<br />

been the Regional Manager<br />

of the IDC’s <strong>Mpumalanga</strong> office<br />

since <strong>20</strong>13. He is currently<br />

also the Acting Manager of the<br />

corporation’s Limpopo office.<br />

Having been awarded a British<br />

Council scholarship, Mr Matsiela<br />

pursued his tertiary education<br />

in Scotland where he obtained<br />

a BSc degree (Biological Sciences)<br />

from Stirling University.<br />

This was followed by an MBA<br />

qualification from the University<br />

of Pretoria, including a Graduate<br />

Diploma in Company Direction<br />

(GIMT). Mashweu also earned<br />

himself a distinction on the highly<br />

regarded Global Executive Development<br />

Programme (GIBS).<br />

What is your core business?<br />

On a daily basis, we screen and assess business plans for viability. Based<br />

on the economic merit thereof, the IDC can then decide on funding<br />

the project under consideration. The corporation provides funding<br />

in the form of loans, equity and guarantees, among others, to cater<br />

for the funding needs of start-ups, expansion of existing capacities as<br />

well as acquisitions. Our funding ranges from R1-million to R1-billion<br />

per project.<br />

The IDC also provides both pre- and post-investment business<br />

support as may be required for its clients, thereby ensuring that any<br />

gaps identified for the success of the funded entities are adequately<br />

addressed, thereby safeguarding the corporation’s investments. For example,<br />

if corporate governance within the funded entity is considered<br />

unacceptable, the IDC will, through its business support programme,<br />

ensure that appropriate interventions are implemented to address<br />

the gap as identified.<br />

Do you sometime hold equity for a long period?<br />

It depends on the strategic nature of the investment. These investments<br />

assist the IDC in fulfilling its developmental role where, for<br />

example, preference may be given to BEE parties at the time of<br />

disposal of shares in this regard, thereby enabling the corporation to<br />

achieve its empowerment and transformation agenda. Furthermore,<br />

dividends from these investments, along with interest income, contribute<br />

significantly towards the IDC’s internally generated funds.<br />

Do you fund projects when times are tough?<br />

Depending on the economic merit of the entity concerned, the IDC<br />

would provide funding because it is in our interest that these businesses<br />

remain viable and sustainable in the long run where they will<br />

MPUMALANGA BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />



continue to contribute meaningfully towards the<br />

success of the economy of South Africa through<br />

sustained employment opportunities, for example.<br />

In actual fact the IDC’s developmental role is more<br />

pronounced during tough economic conditions<br />

as the corporation is expected to play a countercyclical<br />

role in turning the economy around.<br />

What prompted the IDC to open a second office<br />

in the province?<br />

That decision was informed by the prevalence<br />

of economic activities in the “highveld” part of<br />

the province, mainly in Emalahleni and the surrounding<br />

areas. Through this new office, which is<br />

located in Emalahleni, the IDC would like to reach<br />

out to the rest of the province and thereby exploit<br />

the business opportunities further afield in areas<br />

such as Mkhondo, Secunda, Ermelo, Delmas and<br />

Kwa-Mhlanga.<br />

Which sectors are you supporting the most?<br />

The IDC provides funding across the various sectors<br />

that fall under the corporation’s funding mandate,<br />

eg tourism, mining, manufacturing and agriculture,<br />

all of which are some of the key economic sectors<br />

within <strong>Mpumalanga</strong>. Please refer to the IDC website<br />

to see the sectors that the corporation supports.<br />

from these sectors which are expected to create<br />

a significant number of jobs, once implemented.<br />

Can you share with us some success stories?<br />

Some of the IDC’s success stories within <strong>Mpumalanga</strong><br />

include F&K Hlakani Engineering which specialises in<br />

steel fabrication and engineering services. Through<br />

the IDC’s funding the company grew from humble<br />

beginnings to become a key player that is highly<br />

regarded in the market.<br />

Another example of the IDC’s success in the province<br />

is Overlooked Colliery, a mining company which<br />

has also become a key player in the mining sector.<br />

The financial support assisted the BEE shareholder<br />

of Overlooked to buy the rest of the shares in the<br />

company as well as to acquire another mine nearby.<br />

Are there special provisions for women and<br />

young people in IDC programmes?<br />

Indeed, the IDC is committed towards youth and<br />

women empowerment. The corporation has set<br />

itself specific targets in this regard where performance<br />

on these targets is measured accordingly<br />

at the end of each financial year. Through<br />

its Gro-E Youth Fund Scheme, the IDC provides<br />

funding to youth-owned businesses at preferential<br />

interest rates.<br />

Where is the most growth coming from?<br />

Mainly from mining and manufacturing. Agriculture<br />

and tourism also present significant growth and<br />

transformation opportunities for the IDC as evidenced<br />

by the projects currently in our pipeline. We<br />

have seen a number of big projects coming forward<br />

For further details contact<br />

IDC <strong>Mpumalanga</strong><br />

Tel: +27 13 752 7724<br />

Fax: +27 13 752 8139<br />

Email: mashweum@idc.co.za<br />

Web: www.idc.co. za<br />

17 MPUMALANGA BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


Industrial parks and Special<br />

Economic Zones<br />

Dedicated zones and good rates are encouraging manufacturing.<br />

A Forestry Industrial Technology Park at Sabie will increase the value<br />

derived from the province’s trees.<br />

South African industrial planners are creating<br />

industrial parks and Special Economic<br />

Zones (SEZs) as a means to cluster<br />

together businesses that can benefit from<br />

proximity to one another and as a way to boost local<br />

manufacturing through incentives and tax rebates.<br />

The policy aims to attract new skills and develop<br />

new industries.<br />

Key goals behind the establishment of SEZs are:<br />

• to encourage industries to develop in clusters,<br />

leading to economies of scale, skills-sharing and<br />

easier access by suppliers<br />

• to create industrial infrastructure to promote investment<br />

• to promote cooperation between the public and<br />

private sectors<br />

• to use the zones as a launching pad for other<br />

developments.<br />

Ebrahim Patel, Minister of Trade and Industry,<br />

meets trainees at the Highveld Industrial Park.<br />

Apart from attracting foreign direct<br />

investment (FDI) and boosting employment,<br />

SEZs can also play a role in adding new<br />

sectors or sub-sectors to an economy.<br />

Various industrial parks (private or<br />

public) are pursuing similar goals. The<br />

emphasis in most of these initiatives is on<br />

beneficiation, mainly of minerals but also<br />

of agricultural products. South Africa’s most<br />

recent Industrial Policy Action Plan (IPAP)<br />

has a manufacturing focus, so beneficiation<br />

supports the diversification of the economy.<br />

A good example of the thinking on this<br />

subject is illustrated by the focus on forestry<br />

of the <strong>Mpumalanga</strong> Department of Economic<br />

Development and Tourism (DEDT). The<br />

department wants <strong>Mpumalanga</strong> to follow the<br />

example of Finland where every part of a tree<br />

is processed into products that have value.<br />

A memorandum of understanding signed<br />

by South Africa with Finland holds potential for<br />

<strong>Mpumalanga</strong>, as does the planned creation<br />

of a Forestry Industrial Technology Park at<br />

Sabie. DEDT has also asked the state forestry<br />

company, SAFCOL, to relocate its head offices<br />

to the province. SAFCOL is South Africa’s thirdlargest<br />

state-owned enterprise (SOE) and it<br />

had revenues in <strong>20</strong>17/18 of R926-million.<br />

MPUMALANGA BUSINESS <strong>20</strong>17/18 <strong><strong>20</strong>19</strong>/<strong>20</strong><br />


Prime office and industrial<br />

space available<br />

FOCUS<br />

Highveld Industrial Park offers unique variety in a prime location.<br />

Highveld Industrial Park has over 60,000m²<br />

of prime warehousing and workshop<br />

space available for rental, industrial<br />

workshops – from 4<strong>20</strong> to 3,500 square<br />

metres. Vacant property is also available for<br />

greenfield projects, situated on 650 hectares of<br />

prime land.<br />

The warehouses and workshops are suitable<br />

for diverse purposes, including steel fabrication,<br />

warehousing, heavy and light vehicle and<br />

machinery maintenance. Six office blocks offer<br />

furnished and unfurnished office space which are<br />

also suitable for functions and training.<br />

Where is Highveld Industrial Park?<br />

• Within 80km of eight Eskom power stations<br />

• 90km from Pretoria via the N4<br />

• 1<strong>20</strong>km from Johannesburg on the N12<br />

• <strong>20</strong>0km from Mbombela on the N4<br />

• Has an internal rail and road network.<br />

Facilities: value-added services on-site<br />

• Diesel supply facility<br />

• Electricity supplied directly from the Eskom grid<br />

• Methane-rich natural gas directly supplied by<br />

Sasol<br />

• Abundant raw water and on-site purification<br />

• Round-the-clock maintenance services<br />

• Specialised environmental and laboratory<br />

support services<br />

• On-site rail siding<br />

• Canteen and laundry facilities<br />

• 24/7 security and access control<br />

• Emergency services: medical and fire-fighting<br />

19 MPUMALANGA BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


Other technology parks in the pipeline are the<br />

Petro-Chemical Industrial Technology Park (Govan<br />

Mbeki Municipality), Mining and Metal Industrial<br />

Park (eMalahleni Municipality) and the Agricultural<br />

Industrial Park in Mbombela.<br />

A major government-led initiative in <strong>Mpumalanga</strong><br />

is the Nkomazi SEZ which boasts geographic and<br />

logistical advantages and opportunities, given<br />

its proximity to the Mozambique border and the<br />

Mozambican port of Matola. Located in the town<br />

of Komatipoort, the SEZ will provide access to<br />

<strong>Mpumalanga</strong>’s neighbouring provinces Gauteng<br />

and Limpopo and the neighbouring states of<br />

Eswatini and Mozambique.<br />

An agri-hub within the SEZ will deal with the<br />

whole value chain from growing fruit through<br />

to processing, marketing and logistics. Having<br />

manufacturing facilities at the core of the hub will<br />

enable a variety of businesses to be established, both<br />

upstream (to supply the plant) and downstream (to<br />

deal with the products of the plant).<br />

Highveld Industrial Park<br />

An excellent example of a private initiative in the<br />

field of generating growth through the intelligent<br />

use of property is the Highveld Industrial Park in<br />

eMalahleni.<br />

Now a thriving industrial park, the site had<br />

been home to Evraz Highveld Steel and Vanadium.<br />

When that company went into business rescue the<br />

property was repurposed as an industrial park.<br />

Tenants have reacted enthusiastically to the<br />

new offering. The number of tenants grew by<br />

mid-<strong><strong>20</strong>19</strong> to over 40, having just topped <strong>20</strong> in early<br />

<strong>20</strong>18. Tenants include a training centre funded by<br />

the Construction Sector Education and Training<br />

Authority (CETA), several engineering concerns and<br />

a mining equipment refurbishment company.<br />

The property’s developers were able to<br />

leverage all the advantages of the steel company’s<br />

site, which is well located in terms of its access<br />

to the industrial heartlands of two provinces,<br />

<strong>Mpumalanga</strong> and Gauteng. Two iron plants and a<br />

steel plant offer fully-equipped metallurgical and<br />

steel-making facilities, supported by environmental<br />

monitoring services and metallurgical and chemical<br />

laboratories.<br />

In addition, there are good rail and utility<br />

connections, water supply and purification facilities<br />

and a ready supply of gas from several sources. Sasol<br />

operates in <strong>Mpumalanga</strong> and supplies methane-rich<br />

natural gas, while industrial gas producers African<br />

Oxygen and Air Liquide both have plants on the<br />

premises.<br />

In <strong><strong>20</strong>19</strong> Novo Energy opened a natural-gas<br />

compression facility within the park. Fed by the<br />

Sasol natural-gas pipeline, the plant operates all<br />

day, every day and supplies natural gas via its fleet<br />

of trucks to customers in a wide variety of sectors.<br />

Highveld Industrial Park has many types of<br />

workshops, storage areas and offices, together with<br />

canteens, parking areas, change rooms and a clinic.<br />

MPUMALANGA BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />



Diversity of tenants shows<br />

Highveld Industrial Park’s<br />

versatility<br />

CEO Johan Burger highlights the diverse range of<br />

services enjoyed by industrial and office tenants of<br />

<strong>Mpumalanga</strong>’s newest industrial park.<br />

Johan Burger, CEO<br />

Is there a clustering of<br />

enterprises taking place?<br />

It was always the intention to create<br />

an Industrial Park that operates as a<br />

“one stop shop” where businesses<br />

are able to operate with ease<br />

and we are pleased to see these<br />

synergies developing between<br />

the tenants. The park offers a<br />

host of support services, some<br />

of which are offered by current<br />

tenants and others through inhouse<br />

expertise. This ranges from<br />

diesel supply, compressed natural<br />

gas supply, security services, onsite<br />

laboratory and environmental<br />

support services to emergency<br />

services.<br />

What are the logistical advantages<br />

the park enjoys?<br />

Highveld Industrial Park has<br />

large-scale infrastructure to deal<br />

with the high level of traffic and heavy operations including road<br />

infrastructure, on-site weighbridges, tipplers and cranes. The park is<br />

ideally situated in the heart of South Africa’s coal-producing region and<br />

within 80 kilometres of eight Eskom power stations. It is on the outskirts<br />

of eMalahleni situated next to the N4 highway and close to the N12. One<br />

of South Africa’s largest private sidings is directly linked to the Richards<br />

Bay and Maputo line and in the past two years coal, in excess of threemillion<br />

tons, has been moved through the site.<br />

What is your unique selling proposition?<br />

We are logistically well situated and able to provide the necessary support<br />

services to our clients on-site, which includes provision of security,<br />

maintenance and utilities. The current team are all ex-employees of<br />

Evraz Highveld and have specific skills, which range from environmental<br />

to engineering.<br />

We pride ourselves on the diverse nature of the businesses we<br />

have on-site and are able to accommodate with ease; no business is<br />

too big or too small. We have a number of facilities – ranging from<br />

offices to large heavy industrial workshops – and we can accommodate<br />

everything in between.<br />

How significant is the recent purchase by ArcelorMittal<br />

of Highveld Structural Mill?<br />

This is a significant milestone as ArcelorMittal will be one of our anchor<br />

tenants at Highveld Industrial Park. However, this purchase is also<br />

important for the country as it secures a strategic steel manufacturing<br />

asset, which is the only one of its kind in Africa.<br />

21 MPUMALANGA BUSINESS <strong>20</strong>17/18<br />

MPUMALANGA BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>

Introducing the <strong>Mpumalanga</strong> Economic Regulator<br />

The <strong>Mpumalanga</strong> Economic Regulator (“MER”) is a newly<br />

established public entity, reporting to the Department of<br />

Economic Development and Tourism (“DEDT”) in <strong>Mpumalanga</strong>,<br />

charged with the mandate to provide for the regulation of the<br />

gambling and liquor industries in the Province and to provide for<br />

any other matters connected therewith.<br />

The entity was established on 16 October <strong>20</strong>17, marking the<br />

beginning of a journey as a new provincial public entity, aiming to<br />

achieve a cohesive and streamlined approach to gambling<br />

and liquor regulation in the <strong>Mpumalanga</strong> Province.<br />

The establishment of the MER is a culmination of a merger<br />

between the <strong>Mpumalanga</strong> Gambling Board (“MGB”) and the<br />

<strong>Mpumalanga</strong> Liquor Authority (“MLA”).<br />

Our approach<br />

We balance robust industry supervision to prevent and minimise harm<br />

associated with the abuse of alcohol and social impacts associated<br />

with problem gambling. This facilitates a regulatory environment<br />

which enables a diverse and vibrant industry and recognises the social<br />

and economic benefits around responsible industry development. We<br />

have leveraged on the gambling and liquor regulation to develop<br />

holistic approaches to these issues through enhancements in licensing,<br />

compliance, education and administration.<br />

We take a risk-based and intelligence led approach to ensure our<br />

resources are applied where the risk is greatest and to minimise the<br />

burden on responsible industry. We engage with stakeholders to<br />

appreciate current and emerging issues, to influence policy dialogue<br />

and to encourage positive compliance behaviours and best practice<br />

within the industries.

We are committed to ethical principles of honesty, transparency,<br />

integrity, non-discrimination, respect for human dignity,<br />

professionalism and accountability. We are accountable to our<br />

stakeholders for ensuring that the entity’s business is conducted<br />

in accordance with the highest standards of corporate governance, as<br />

well as ethical and moral behaviours.<br />


We continuously monitor and review the regulatory environment<br />

for opportunities to improve regulatory efficiencies and effective<br />

enforcement of applicable legislation, as well as minimising<br />

harm caused by problem gambling and the abuse of alcohol.<br />

There are fundamental reforms on both the gambling and liquor<br />

regulation underway.<br />

A snapshot of the regulatory environment in <strong>Mpumalanga</strong><br />

• Since 1994, South Africans have begun to enjoy newfound<br />

freedom to participate in all social spheres, including the<br />

age-old recreational activity, gambling. By legalising this<br />

form of entertainment, government ensured a decrease in<br />

criminality and clandestine behaviour that existed prior to the<br />

legislation of the sector.<br />

• <strong>Mpumalanga</strong> was the first province to establish a gambling<br />

regulator in South Africa, post the legalisation of gambling in<br />

1994; and the first to introduce the legalised gambling in<br />

South Africa, i.e. casinos and limited payout machines (“LPMs”).<br />

• The MER and predecessor entities introduced various economic<br />

growth projects in the gambling industry; 3 licensed casinos and<br />

the fourth casino license which is still being considered,<br />

2 route operators linked to 213 site operators, 8 bingo operators, 4<br />

independent site operator licences, 37 betting outlets and<br />

1 totalisator operator linked to 27 branches/agencies.<br />

• The industry acts as a catalyst to create a thriving urban hub around<br />

it, which includes malls, hotels and recreation facilities. Jobs are<br />

created, new enterprises emerge, and inevitably, other investors are<br />

attracted to the region. This type of symbiotic development of<br />

infrastructure works hand in hand with the tourism sector,<br />

contributing to the influx of visitors to a region.<br />

Chief Executive Officer: Bheki Mlambo<br />

• In addition, industry operators are liable to pay levies and<br />

taxes, which contribute enormously to government’s social<br />

development commitments. The MER takes responsibility for<br />

ensuring that these finances are accurately tallied and collected.<br />

• On 01 April <strong>20</strong>16, the MLA was de-linked from the DEDT, to<br />

become a stand-alone public entity, until the merger in October <strong>20</strong>17.<br />

In terms of liquor licences, the entity and its predecessor entities has<br />

granted approximately 6000 liquor licences.<br />

• The entity is incredibly active in promoting the safe and responsible<br />

use of gambling and liquor as a form of entertainment. It’s no secret<br />

that gambling and liquor can become habit-forming and have the<br />

potential to affect not only families and their livelihoods, but the<br />

economy of a region negatively, which<br />

is something the MER takes very seriously.<br />

• It is the board’s mandate to adopt an honest<br />

and open policy when it comes to the potential<br />

negative side of these two industries, by<br />

educating people of all cultures and<br />

socio-economic backgrounds to<br />

gamble responsibly and<br />

drink responsibly.



Making it easier to do business with Nedbank<br />

Whole-view <strong>Business</strong> Banking<br />

Loderick Lubisi, Nedbank Provincial General Manager for Retail and<br />

<strong>Business</strong> Banking for <strong>Mpumalanga</strong>, explains how Nedbank can help<br />

business owners in the region.<br />

on what’s most important to you – running your<br />

business,’ says Lubisi.<br />

There is good news for <strong>Mpumalanga</strong><br />

business owners and entrepreneurs seeking<br />

a unique banking experience: Nedbank<br />

<strong>Business</strong> Banking has business managers,<br />

located across both provinces, specialising<br />

in commercial industries as well as the<br />

agricultural sector.<br />

Lubisi says his team is ready to assist clients with<br />

professional advice, industry-specific solutions<br />

and a comprehensive range of financial products<br />

and services.<br />

‘At Nedbank <strong>Business</strong> Banking we believe that you<br />

need a financial partner who not only understands<br />

your circumstances and aspirations, but also provides<br />

you with relevant solutions and a banking experience<br />

that is hassle-free. This allows you to concentrate<br />

24<br />

In line with our new brand proposition encouraging<br />

clients to see money differently, our <strong>Mpumalanga</strong><br />

agriteams are committed to providing key support,<br />

as well as advisory and business services to all<br />

roleplayers involved in the agrispace in both<br />

provinces. We will share our financial expertise<br />

and play a role in advancing profitable, sustainable<br />

practices throughout the agricultural production and<br />

consumption value chain.<br />

We recognise that farmers today face many<br />

challenges and that to remain competitive they<br />

continually have to improve and adopt best practices<br />

and new technologies.<br />

‘We encourage you to see money differently with<br />

Whole-view <strong>Business</strong> Banking’, says Lubisi.<br />

‘We are also involved in a number of initiatives with<br />

the public sector, ensuring that such partnerships<br />

support provincial government goals in respect of job<br />

creation and growing the economy,’ Lubisi concludes.<br />

Should you be interested in taking your business to the<br />

next level, please call Loderick Lubisi on<br />

+27 (0)13 759 4910, send an email to<br />

loderickl@nedbank.co.za or<br />

visit www.nedbank.co.za.


Nedbank <strong>Business</strong> Bundle is a game changer<br />

with savings and personalised services for<br />

small enterprises<br />

The new <strong>Business</strong> Bundle from Nedbank is a game changer for small<br />

enterprises in <strong>Mpumalanga</strong>, offering the best value for money when<br />

compared to rival offerings.<br />


With the country’s challenging economic<br />

environment, the <strong>Business</strong> Bundle not only<br />

offers you personalised banking services,<br />

but also critical tools to save – with up to<br />

40% savings on monthly banking fees –<br />

contributing directly to the bottomline at a<br />

time when every cent counts.<br />

In line with Nedbank’s new brand proposition to see<br />

money differently, the <strong>Business</strong> Bundle resonates with<br />

the bank’s commitment to do good by promoting<br />

small enterprises.<br />

‘As a bank for small businesses we are committed<br />

to partnering with entrepreneurs to help grow their<br />

businesses. As such, Nedbank is always looking at<br />

ways in which we can help unlock the value of our<br />

clients’ businesses. We support their business growth<br />

journeys by providing practical tools to help them<br />

run their businesses,’ says Loderick Lubisi, Nedbank<br />

Provincial General Manager, Retail and <strong>Business</strong><br />

Banking for <strong>Mpumalanga</strong>.<br />

‘Small businesses are the lifeblood of our economy.<br />

Nedbank has, over the years, instituted various<br />

interventions aimed at giving support to the smallbusiness<br />

sector.’<br />

Trust us to protect your business against<br />

everyday risk<br />

Stella Tedeschi, Regional Manager of Broker<br />

Channels for <strong>Mpumalanga</strong>, says Nedbank<br />

Insurance is not a one-size-fits-all business.<br />

Nedbank Insurance has evolved into a business<br />

that provides integrated insurance to individual<br />

and business clients. Our offering comprises<br />

comprehensive short-term insurance solutions,<br />

life insurance solutions and investments.<br />

Nedbank Insurance provides a comprehensive<br />

offering of short-term products on behalf of<br />

blue-chip insurers. Should you be interested in<br />

expert advice on the type of cover that is exactly<br />

right for your business needs, look no further.<br />

Nedbank has a team of specialists ready to provide you with<br />

information necessary to allow you to make an informed<br />

decision. For more information call Stella Tedeschi on<br />

+27 (0)12 436 7659, send an email to<br />

stellat@nedbankinsurance.co.za,<br />

or visit www.nedbank.co.za.<br />

To see how Nedbank can help your small business reach its<br />

goals call Loderick Lubisi on +27 (0)13 759 4910, send an<br />

email to loderickl@nedbank.co.za or<br />

visit www.nedbank.co.za/business.<br />

25<br />

Nedbank Ltd Reg No 1951/000009/06. Nedbank Ltd Reg Authorised No 1951/000009/06 financial<br />

Authorised financial services services and registered and registered credit credit provider provider (NCRCP16).


Overviews of the main economic<br />

sectors of <strong>Mpumalanga</strong><br />

Agriculture 28<br />

Forestry and paper 30<br />

Oil and gas 34<br />

Water 35<br />

Mining 40<br />

Manufacturing 44<br />

Transport and logistics 46<br />

Tourism 48<br />

Banking and financial services 50<br />

Development finance and<br />

SMME support 52<br />

Education and training 54<br />

Sasol’s operations at Secunda are among<br />

the most important manufacturing facilities<br />

in <strong>Mpumalanga</strong> province. Sasol Gas is one<br />

of the four Sasol operations at Secunda.


Agriculture and agri-processing<br />

A second agri-hub will be completed this year.<br />

Small-scale farmers and co-operatives are being given a chance<br />

to connect to the formal economy via agri-hubs which will<br />

also provide advice and equipment. An agri-hub at Mkhuhlu,<br />

east of Hazyview, has been established and another is set to<br />

be completed in <strong><strong>20</strong>19</strong> at Mkhondo (Piet Retief).<br />

An International Fresh Produce Market is planned as a means of<br />

stimulating agricultural production, but the project has stalled. The new<br />

premier of the province has pledged that the first phase of the market’s<br />

top structure will begin in the <strong><strong>20</strong>19</strong>/<strong>20</strong> financial year.<br />

The intention is that this facility will lead to increased volumes<br />

supplying domestic and international markets. Each of the province’s<br />

districts will have agri-hubs. The Department of Agriculture, Rural<br />

Development, Land and Environmental Affairs has set up Farmer<br />

Production Support Units in two municipalities, Bushbuckridge and<br />

Nkomazi. A feedlot has been built at Mzinti and a R<strong>20</strong>-million packhouse<br />

at Bushbuckridge.<br />

Other interventions include the re-commissioning of the<br />

Bushbuckridge poultry abattoir and support for soya and maize farmers<br />

to supply the Lekwa Oilseed Crushing Plant in Standerton. Existing<br />

programmes such as the Fortune 40 young farmers programme is to<br />

be strengthened with the addition of 35 new incubation farms.<br />

Big companies cultivate maize, sugar, timber, vegetables, fruit<br />

and tea on a large scale in the province and are active in the<br />

raising of poultry and cattle. Large commercial farmers account<br />


Astral Foods in Standerton<br />

has more than 2 400<br />

employees.<br />

for the bulk of crop and livestock<br />

production.<br />

Astral Foods runs a poultry<br />

processing plant in Standerton<br />

which has 2 425 employees with<br />

a further 900 people further<br />

down the agricultural value chain<br />

dependent on the facility.<br />

Agriculture is responsible for<br />

about 3.4% of <strong>Mpumalanga</strong>’s Gross<br />

Domestic Product (GDP). Fruits,<br />

nuts and vegetables are major<br />

contributors to the provincial<br />

and national export basket and<br />

there is still scope for expansion<br />

in this sector, both in terms of<br />

lands planted and in terms of<br />

downstream beneficiation.<br />

MPUMALANGA BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />



Crops<br />

Macadamia nuts have grown in popularity exponentially in recent years.<br />

About 4 000 hectares of new trees is added each year across South Africa,<br />

with most of that in <strong>Mpumalanga</strong> and neighbouring Limpopo. The vast<br />

majority of the nuts are exported, with about 40% going to China.<br />

There are about 450 farmers growing the nuts and there are 14 cracking<br />

factories in South Africa. The sector employs about 4 500 people, of which<br />

1 500 are permanent employees. Barberton and Hazyview are two prime<br />

areas for the nut.<br />

<strong>Mpumalanga</strong> produces one-million tons of maize from 291 788ha. About<br />

53 000 tons of wheat and 33 000 tons of sorghum are produced annually.<br />

Soya bean is another major crop: more than half of South Africa’s soya bean<br />

crop is produced in <strong>Mpumalanga</strong>’s Highveld areas.<br />

<strong>Mpumalanga</strong> accounts for about 21% of South Africa’s citrus production<br />

and a third of its export volumes, with Valencia’s being the province’s most<br />

popular varietal and Nelspruit being the centre of the sector.<br />

Avocados, litchis, mangoes and bananas thrive in the province. Hazyview<br />

is an important source of bananas, with <strong>20</strong>% of South Africa’s production<br />

originating there.<br />

Deciduous fruits are cultivated in smaller quantities. About 15 000 tons<br />

of table grapes are produced in the province annually and <strong>Mpumalanga</strong><br />

produces its own wine.<br />

A specialist fruit that does well in the province is the marula. The marula<br />

fruit makes a popular beer and is used in the production of a liqueur that<br />

has done well on the international market.<br />

Cotton is grown mostly under dryland conditions in Marble Hall. The<br />

province has 1 500ha of dryland under cotton. Much of South Africa’s total<br />

annual production of about 34-million kilograms of tobacco, especially<br />

Virginia tobacco, takes place in the north-western parts of <strong>Mpumalanga</strong>, and<br />

in neighbouring Limpopo. Other crops produced for export in <strong>Mpumalanga</strong><br />

include cut flowers, pot plants and nursery plants.<br />

<strong>Mpumalanga</strong> has the second-biggest sugar industry in South Africa,<br />

after KwaZulu-Natal. TSB Sugar runs three mills in the Lowveld region,<br />


Citrus Growers Association: www.cga.co.za<br />

Fresh Produce Exporters’ Forum: www.fpef.co.za<br />

Macadamias South Africa: www.samac.org.za<br />

South African Cane Growers’ Association:<br />

www.sacanegrowers.co.za<br />

South African Subtropical Growers’ Association:<br />

www.subtrop.net<br />

two of which have refining<br />

capacity, and employs about<br />

4 700 people. More than 1 400<br />

farmers (commercial and smallscale)<br />

deliver sugar cane to the<br />

company. TSB brands are Selati<br />

(sugar) and Molatek (animal feed).<br />

Companies<br />

Fresh fruit and nut supplier Halls<br />

cultivates 375ha of its own land<br />

and has another 1 400ha under<br />

management. Its crops include<br />

avocados and litchis.<br />

Westfalia is a diversified<br />

agricultural group which runs<br />

extensive operations in the<br />

province. The group’s South<br />

African operations regularly sell<br />

more than five-million cartons of<br />

avocados (50% of the country’s<br />

export volume) and sevenmillion<br />

cartons of mangoes.<br />

Umbhaba Estates is one of the<br />

biggest banana growers in the<br />

province.<br />

The drier Highveld region<br />

with its cold winters supports<br />

crops such as cereals, legumes<br />

and nuts. There is extensive<br />

irrigation in the Loskop Dam<br />

area. Ermelo is one of South<br />

Africa’s main centres of sheep<br />

farming and wool production.<br />

Subtropical fruit flourishes in<br />

the Lowveld with the town of<br />

Nelspruit being a major citrus<br />

producer. Mixed farming and<br />

potatoes, sweet potatoes and<br />

beans are mostly found in the<br />

southern and western parts of<br />

the province.<br />

29 MPUMALANGA BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


Forestry and paper<br />

Sawmills are generating energy.<br />

Sustainability is the modern watchword but finding a way to<br />

use resources for people is also popular.<br />

The MTO Group, which has 39 900ha of plantation<br />

under management in the Lowveld, teamed up in <strong>20</strong>18<br />

with mountain-bike enthusiasts of White River and Nelspruit to<br />

develop a set of trails through the hilly landscape of the area.<br />

One of the biggest operations in the forestry and paper sector<br />

in <strong>Mpumalanga</strong> is Sappi’s Ngodwana mill. The mill produces<br />

330 000 tons of paper pulp for its own consumption, 250 000<br />

tons of dissolving wood pulp (DWP) and 380 000 tons of paper<br />

(newsprint and kraft linerboard used for packaging) annually.<br />

Exports account for 70% of the mill’s product.<br />

Ongoing investment at Ngodwana Mill will contribute R13-<br />

billion to the provincial economy over <strong>20</strong> years. Sappi’s other large<br />

facility in the province, the Lomati Sawmill in Barberton, produces<br />

kiln-dried Southern African pine lumber from sawlogs supplied<br />

by Sappi Forests.<br />

The mill generates its own energy through co-generation<br />

(steam and electricity from renewable and other sources). In <strong>20</strong>17<br />

Sappi built a sugar extraction demonstration plant at Ngodwana.<br />

Findings from the experiment will help to improve the process<br />

of extracting bio-renewable chemicals. Sappi is partnering with<br />

Valmet, a Finnish company.<br />

Other forestry companies are looking into energy generation,<br />

including AFCOL. <strong>Mpumalanga</strong> has 40% of South Africa’s forestry<br />

resources. This fact presents an opportunity to exploit the sector’s<br />

byproducts in the biomass-to-energy field.<br />

The Zebra Pellets plant in Sabie is to be converted by national<br />

utility Eskom into a torrefied pellet plant. The wood will be provided<br />

to the plant (owned by the Industrial Development Corporation)<br />

and then heated without the use of oxygen (torrified) which creates<br />

a coal-like product without the carbon.<br />


The MTO Group plants 18<br />

trees every minute.<br />

Forestry accounts for about<br />

8% of <strong>Mpumalanga</strong>’s gross<br />

domestic product. The sector<br />

comprises logging, saw-milling,<br />

wood product and pulp and<br />

paper manufacture. Pulp and<br />

paper are the main exports,<br />

along with sawn lumber, wood<br />

chips and wattle extract. Most<br />

sawn timber in South Africa is<br />

used in the construction sector.<br />

<strong>Mpumalanga</strong> has the ideal<br />

climate and topography for<br />

forests. Sabie and Graskop<br />

represent the hub of the industry,<br />

but commercial forests are also<br />

found to the east and south<br />

along the Swaziland border.<br />

About 11% of the land mass is<br />

forested, with 4% of that being<br />

natural forest. The province is the<br />

national leader in total hectares<br />

under forest (514 000ha) and in<br />

export earnings.<br />

Plans to develop an<br />

Agriculture and Forestry<br />

MPUMALANGA BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />



Technology Park are being drawn up by the Provincial Government of<br />

<strong>Mpumalanga</strong>. The <strong>Mpumalanga</strong> Economic Growth and Development<br />

Path (MEGDP) intends to expand the industrial base of the provincial<br />

economy, with a focus on beneficiation, agri-processing and value<br />

chain development.<br />

When forestry managers, contractor and forestry equipment<br />

suppliers gathered at the biannual Focus on Forestry conference in<br />

White River in <strong><strong>20</strong>19</strong>, the theme was “Bridging the digital divide in the<br />

African forestry sector”.<br />

Sustainability is a key area for companies in the forestry sector and<br />

advances in the Internet of things and AI are being keenly monitored<br />

for ways to enhance margins in an environmentally sound way.<br />

York Timbers owns and operates five processing plants, including<br />

the including the largest sawmill and plywood plants in South Africa<br />

and it has 60 470 planted hectares. The company is considering<br />

investing in biomass energy generation. The Industrial Development<br />

Corporation (IDC) has a stake in York Timbers and a 42.6% share in<br />

Hans Merensky Holdings, a company with timber and processing<br />

interests in three provinces. Merensky is responsible for <strong>20</strong>% of South<br />

Africa’s sawn pine lumber.<br />

The Mondi Group has extensive forestry holdings in the province<br />

and has been working on introducing a higher degree of mechanisation<br />

in its operations. Mondi has also instituted an ecosystem management<br />


Forestry South Africa: www.forestry.co.za<br />

Institute for Commercial Forestry Research: www.icfr.ukzn.ac.za<br />

South African Institute of Forestry: www.saif.org.za<br />

Technical Association of the Pulp and Paper Industry of South<br />

Africa: www.tappsa.co.za<br />

plan throughout its forestry<br />

operations with the intention<br />

of better managing the impact<br />

its work has on the environment.<br />

Although local demand is<br />

dwindling, the export market<br />

for pulp and paper is strong.<br />

Pulp production figures have<br />

been on the rise for several<br />

years and companies like Mondi<br />

are increasingly focusing on<br />

pulp export because of better<br />

margins.<br />

PG Bison has a board plant<br />

in Piet Retief. Sonae Rauco runs<br />

large plants at White River and<br />

Panbult. Komatiland Forests,<br />

a 100%-owned subsidiary of<br />

state company SAFCOL, has big<br />

plantations in several districts.<br />

TWK is a R6-billion agricultural<br />

company with its headquarters<br />

in Mkhondo (Piet Retief).<br />

Asset management company<br />

Global Environment Fund<br />

created Imvelo Forests and in<br />

<strong>20</strong>15 the company investigated<br />

using thermal imaging to detect<br />

fires. Among the other private<br />

timber growers in the province<br />

are Pull Scar Timber Co, and<br />

United Forest Products.<br />

31<br />

MPUMALANGA BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


Oil and gas<br />

Sasol is a world leader in liquid fuels.<br />

International chemicals and energy company Sasol has several<br />

large plants in <strong>Mpumalanga</strong> and plays a major role in the economy<br />

of <strong>Mpumalanga</strong>. Sasol Gas is one of the four Sasol operations<br />

at Secunda, supplying natural gas to Sasol Synfuels and buying<br />

Sasol Synfuels’ methane-rich pipeline gas to sell to customers in<br />

<strong>Mpumalanga</strong> and KwaZulu-Natal.<br />

Sasol will be a key player when national government finalises<br />

policy on biofuels. Statutory minimums for biodiesel in diesel and<br />

bioethanol in ethanol will give certainty to producers and boost<br />

production levels. Sasol is already making 285 000kl of absolute<br />

alcohol in ethanol from sugar fermentation annually. About 60-million<br />

litres of liquid fuel is produced each day at the coal-to-liquid plant<br />

run at Secunda. Sasol has finished its mine replacement programme<br />

and feedstock is secure until the year <strong>20</strong>50.<br />

There is increased interest in gas as a source of energy in<br />

South Africa although the country currently only has one gasto-liquids<br />

plant.<br />



Independent Power Producers Programme:<br />

www.ipp-projects.co.za<br />

Petroleum Agency SA: www.petroleumagency.co.za<br />

PetroSA: www.petrosa.co.za<br />


A biomass project has started<br />

at Sappi’s Ngodwana mill.<br />

Much of the large gas resource<br />

of Mozambique is piped to the<br />

industrial heartland of South<br />

Africa SECTOR and the INSIGHT promoters of the<br />

Nkomazi Special Economic Zone<br />

believe that the fact that a natural<br />

gas pipeline passes through the<br />

SEZ is a big selling point.<br />

The Liquefied Natural Gas<br />

Independent Power Producer<br />

Procurement Programme (LNG<br />

IPPPP) is part of the broader<br />

programme of the National<br />

Department of Energy which<br />

encourages private investment<br />

in renewable energy, namely the<br />

Renewable Energy Independent<br />

Power Producer Procurement<br />

Programme (REIPPPP). The total<br />

allocated to gas-to-power in the<br />

national power plan is 3 726MW,<br />

of which 3 000MW is for LNG.<br />

Another part of the REIPPPP<br />

is alternative sources such as<br />

the conversion of biomass to<br />

energy. At Sappi’s Ngodwana<br />

mill, a 25MW project is underway.<br />

Transnet Pipelines runs<br />

a 3 800km network of<br />

underground, high-pressure<br />

petroleum and gas pipelines<br />

throughout the eastern parts<br />

of South Africa. The company’s<br />

sophisticated multi-product<br />

pipeline (NMPP) between the<br />

coast and Gauteng transports<br />

a range of liquid products.<br />

MPUMALANGA BUSINESS <strong>20</strong>17/18 <strong><strong>20</strong>19</strong>/<strong>20</strong><br />



Water<br />

A new dam is to be built on the Crocodile River.<br />

Rapid growth in the Ehlanzeni District Municipality has led the<br />

Provincial Government of <strong>Mpumalanga</strong> to decide to build a<br />

new dam on the Crocodile River in the City of Mbombela.<br />

Citizens of the Thembisile Hani Municipality will get more<br />

immediate relief from water shortages with the construction of a treatment<br />

plant on the Moses River. Acting on a disturbing report published<br />

by the Centre for Environmental Rights on the way some mining<br />

companies are using water, a provincial Environmental Management<br />

Committee has been appointed to conduct environmental impact<br />

analysis and assess climate change threats.<br />

NuWater was contracted to reduce waste at the water treatment<br />

plant for Emalahleni Municipality. An ultra-filtration technology was<br />

used to reduce waste from <strong>20</strong>Ml/day.<br />

A total of 327 water infrastructure projects benefiting 350 259<br />

households have been completed, with a further 165 sanitation projects<br />

finalised. A bulk water supply system connecting villages within<br />

the Bushbuckridge area has been completed. National government<br />

has subsequently disbanded the Bushbuckridge Water Board and Rand<br />

Water has taken over its operations.<br />

A joint project with Eskom related to rain-water harvesting will also<br />

create jobs. The Siyasebenza Job Creation Initiative is intended to create<br />

900 jobs in the Nkangala District Municipality.<br />

The Komati Basin Water Authority (KOBWA) is an important agency<br />


De Hoop Dam: www.dhcw.co.za<br />

Inkomati-Usuthu Catchment Management Agency:<br />

www.iucma.co.za<br />

Komati Basin Water Authority: www.kobwa.co.za<br />

National Department of Water and Sanitation: www.dws.gov.za<br />


An Environmental<br />

Management Committee<br />

has been established.<br />

in controlling water resources in<br />

the region. Formed out of a cooperation<br />

agreement between<br />

South African and Swaziland,<br />

the agency has built two large<br />

dams and is responsible for their<br />

upkeep.<br />

The Imkomati-Usuthu<br />

Catchment Management Agency<br />

covers <strong>Mpumalanga</strong>, parts of<br />

Limpopo and part of the Kingdom<br />

of Swaziland and is responsible for<br />

water usage issues relating to the<br />

following river catchment areas:<br />

Sabie-Sand, Crocodile, Komati,<br />

Nwaswitsontso and Nwanedzi.<br />

The De Hoop Dam is the<br />

centrepiece in the large<br />

Olifants River Water Resource<br />

Development Project (ORWRDP)<br />

which is transforming the water<br />

environment for industrial,<br />

commercial and private users.<br />

As the catchment area for this<br />

huge scheme is to the north of<br />

<strong>Mpumalanga</strong>, the spinoff effect<br />

on the province is significant.<br />

35 MPUMALANGA BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong> <strong>20</strong>17/18

FOCUS<br />

Driekoppies Dam is the<br />

perfect event venue<br />

The Komati Basin Water Authority makes the dam available for events,<br />

sports tournaments and recreational use.<br />

The stunning beauty of the Driekoppies Dam and its<br />

surrounds has made it possible for the Komati Basin<br />

Water Authority (KOBWA) to convert the dam into a<br />

suitable site for commercial and private recreational<br />

use. This means that at a very low fee, the public can explore<br />

and discover the scenic beauty and entertainment attractions<br />

of the Driekoppies Dam.<br />

In order to make the information about KOBWA’s trans-boundary<br />

nature more appealing, KOBWA uses the edutainment approach by<br />

hosting educational tours around the dam and sports tournaments.<br />

Here, people can be educated<br />

about KOBWA in a relaxed,<br />

enabling environment and<br />

this is accommodated at the<br />

Driekoppies Dam.<br />

The Driekoppies Dam is a<br />

popular venue for music shows<br />

and private events such as picnics,<br />

braais, family fun days, baby<br />

showers, and weddings. This is<br />

MPUMALANGA BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />


FOCUS<br />

because of its spacious entertainment area which overlooks<br />

the exquisite dam. Regulars are young entrepreneurs from<br />

areas surrounding the dam who host Sunday Sessions and<br />

the Food Market.<br />

It also offers a venue for traditional authorities wishing to host<br />

cultural activities and traditional meetings. Bike rallies and fishing<br />

tournaments by various associations are also held at the dam.<br />

KOBWA puts safety at the forefront of all planning. There is an<br />

implementable Emergency Preparedness Plan that involves every<br />

segment of society, from government agencies to traditional<br />

authorities at community level. This ensures that entertaining at<br />

the dam is not a risk.<br />

The Driekoppies Dam is readily available for young people who<br />

live in the Nkomazi area as a way to promote entrepreneurship<br />

among young people. With so many interesting things to do,<br />

especially on weekends, the Driekoppies Dam is the perfect<br />

destination for any event.<br />

Africa (1993 to 1998) and Maguga<br />

Dam in Eswatini (1998 to <strong>20</strong>03).<br />

The two dams were constructed<br />

mainly to provide assurance of<br />

water supply to the irrigators in<br />

both member states.<br />

Tourism is one of the spinoffs<br />

of the development of the<br />

Driekoppies and Maguga dams.<br />

There has been an increase in<br />

recreational activities in both dams.<br />

About KOBWA<br />

The Komati Basin Water Authority (KOBWA) is a bi-national<br />

company formed in 1992 through the Treaty of the Development<br />

and Utilisation of the Water Resources of the Komati River Basin.<br />

The treaty was signed by the Government of the Kingdom of<br />

Eswatini and the Government of the Republic of South Africa. The<br />

authority was tasked with designing, constructing, operating and<br />

maintaining two dams and associated infrastructure. This resulted<br />

in the construction of Driekoppies Dam in Schoemansdal South<br />


Physical address: Komati Basin Water Authority<br />

Driekoppies Dam<br />

Tel: +27 13 781 0317/8/9<br />

Fax: +27 13 781 03<strong>20</strong><br />

Email: driekoppies.office@kobwa.co.za<br />

Website: www.kobwa.co.za<br />

37 MPUMALANGA BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>

FOCUS<br />

Water Quality Testing Laboratory<br />

sets high standards<br />

The Gert Sibande District Municipality’s Water Quality Testing Laboratory is the<br />

only SANAS-accredited government-owned facility in <strong>Mpumalanga</strong> Province.<br />

Technicians from GSDM Water Quality Testing Laboratory during an awareness programme to schools.<br />

The Water Quality Testing Laboratory is<br />

situated on the N17 corridor in Ermelo.<br />

This location is bounded by the<br />

Ekurhuleni Metro of the Gauteng Province<br />

to the west, Sedibeng District Municipality of the<br />

Northern Free State to the south-west, Ehlanzeni<br />

District Municipality to the north-east, Nkangala<br />

District Municipality to the north, Amajuba District<br />

Municipality to the south-east and eSwatini to<br />

the east.<br />

The District Municipality’s Water Quality<br />

Testing Laboratory is the only SANAS-accredited,<br />

government-owned facility in <strong>Mpumalanga</strong><br />

Province and is evidence of Gert Sibande District<br />

Municipality’s vision to be “A community-driven<br />

district of excellence and development”.<br />

This is also in line with the National Development<br />

Plan (NDP) vision <strong>20</strong>30 which is “To ensure that all<br />

South Africans have access to clean running water<br />

in their homes”.<br />

The Water Quality Laboratory is an accredited<br />

facility meeting the requirements of the ISO/<br />

IEC 17025:<strong>20</strong>05. The centrality and the strategic<br />

location of this facility ensures easy accessibility<br />

by all stakeholders within the district and the<br />

neighbouring districts.<br />

Services<br />

Informed by the need to improve water quality<br />

in the district, the laboratory was established in<br />

<strong>20</strong>11 to guarantee safe drinking water provided to<br />

millions of citizens within the district according<br />

to section 9 (1) of the Water Services Act No.<br />

108 of 1997.<br />

The facility provides chemical analysis,<br />

microbiological analysis and physical analysis.<br />

These services are available to all stakeholders<br />

and customers, including local municipalities and<br />

industries. The price list for water quality testing<br />

offered is available on request.<br />

MPUMALANGA BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />


FOCUS<br />

In addition, the Gert Sibande Water Quality<br />

Testing Laboratory promotes water quality and<br />

care for water in communities through active<br />

involvement in awareness programmes offered by<br />

local municipalities in the district. It also promotes<br />

careers in science by providing opportunities to<br />

students in the form of in-service training.<br />

The laboratory boasts the provision and<br />

delivery of superior laboratory services and<br />

aims to promote and support development<br />

and culture of scientific learning. The Gert<br />

Sibande Laboratory regards its clients as valuable<br />

stakeholders whose interests are a priority for<br />

the laboratory.<br />

Office hours<br />

Monday to Thursday: 07h30 to 13h00, 13h30 to 16h30<br />

Friday: 07h30 to 14h00<br />

Accredited Water Quality Testing Laboratory<br />

situated in Ermelo, <strong>Mpumalanga</strong>.<br />


Physical address: Cnr N17 Bethal and Nespan Roads, Cassim Park<br />

Postal address: PO Box 1748, Ermelo 2350<br />

Tel: +27 17 801 7143<br />

Email: laboratoryservices@gsibande.gov.za<br />

Website: www.gsibande.gov.za<br />

Facebook: @gertsibandedm<br />

Twitter: @GertSibandeDM<br />

Coordinates: S26 31’ 25.73” E29 58’ 19.25<br />

39<br />

MPUMALANGA BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


Mining<br />

Sasol’s R5.6-billion Impumelelo Colliery is producing coal.<br />


Mineworkers at Arnot mine<br />

have become majority<br />

shareholders.<br />

After Exxaro Coal <strong>Mpumalanga</strong>’s transfer of its 50% stake in<br />

the Arnot coal mine to mineworkers at no cost, the workers<br />

received a further 5% “free-carry” because of the specifications<br />

of Mining Charter III. The mine thus becomes South Africa’s<br />

first majority worker-owned mine. Wescoal is the other shareholder and<br />

operator of the mine.<br />

Wescoal’s profits doubled in <strong>20</strong>18 to R<strong>20</strong>2-million, proof that the coal<br />

miner’s acquisition and expansion strategy is paying off. The company,<br />

which runs three mines and four processing plants in <strong>Mpumalanga</strong>, has<br />

a resource base of about 300Mt.<br />

Although renewable energy is catching on in South Africa, there<br />

is no prospect of <strong>Mpumalanga</strong>’s coal-fired power stations being<br />

mothballed soon.<br />

Nkomati Anthracite has been revived after an investment from<br />

Unicorn Capital Partners, formerly Sentula Mining. The mine, which is<br />

in the south-eastern corner of the province, has proven resources of<br />

8.7-million tons and upwards of 400 jobs were created over the last two<br />

years. Local communities have a 16.1% stake in the relaunched mine<br />

and the <strong>Mpumalanga</strong> Economic<br />

Growth Agency (MEGA) holds 34%.<br />

Coal giant Exxaro, which runs<br />

five mines in the province, has<br />

committed R3.8-billion to its<br />

Belfast project, an investment<br />

that will create 1 160 jobs and<br />

have an impact on the GDP (over<br />

the life of the mine) of R39-billion.<br />

Exxaro is also extending the life<br />

of its Leeuwpan Mine by another<br />

10 years.<br />

<strong>Mpumalanga</strong> accounts for 83%<br />

of South Africa’s coal production<br />

and is the third-largest coalexporting<br />

region in the world.<br />

The opening in April <strong><strong>20</strong>19</strong><br />

of Sasol’s Impumelelo Colliery<br />

south-west of Secunda was the<br />

final phase of an investment in<br />

new coal mines to replace three<br />

coal mines that had reached the<br />

end of their lives. Sasol produces<br />

40-million tons of coal annually.<br />

Impumelelo, which will produce<br />

8.5-million tons per year, cost<br />

R5.6-billion to build.<br />

Anglo American has sold its<br />

thermal coal operations to Seriti,<br />

which is therefore the secondlargest<br />

provider of thermal coal<br />

to Eskom, supplying almost a<br />

quarter of the utility’s annual coal<br />

requirements.<br />

MPUMALANGA BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />



State coal company AEMFC (African Exploration Mining & Finance<br />

Corporation) runs a colliery at Vlakfontein near Ogies and is planning<br />

to develop other projects.<br />

South32 has four collieries and three processing plants in the province.<br />

The company has 4 860 full-time employees and 4 400 contractors.<br />

ArmCoal is a black-owned coal company that arose out of a deal<br />

between Xstrata Coal SA and African Rainbow Minerals Limited (51%).<br />

ArmCoal was the vehicle used in the creation of the large open-cut<br />

thermal coal mine at Goedgevonden.<br />

Contribution to regional economy<br />

Mining’s contribution to provincial GDP is 25.9% of GDP and the<br />

sector employs 53 000 people. Most of the province’s mining companies<br />

are involved in training. The Colliery Training College (CTC) in<br />

Emalahleni is owned by a consortium of companies: Exxaro, Glencore,<br />

Kanga Coal, South32 and Izimbiwa Coal. Historically the centre was<br />

for mining only, but now it offers a broad range of artisan training,<br />

including auto electrician, fitting and turning and millwrights. CTC<br />

has been recognised as a leader in artisan training by the National<br />

Skills Authority.<br />

Coal, platinum, gold and nickel are the province’s major mineral<br />

resources and all are still in demand, even if coal and platinum have<br />

experienced roller-coaster price fluctuations. South Africa produces<br />

75% of the world’s platinum, 80% of its manganese, 73% of its chrome<br />

and 45% of its vanadium.<br />

Deposits of chromite, magnetite and vanadium are the basis of the<br />

ferro-alloy complex in Witbank-Middelburg (in the District Municipality<br />

of Nkangala) and Lydenburg (Mashishing). Nkomati Mine is South Africa’s<br />

only pure-nickel operation. The province’s coalfields are in the south<br />

and west of the province.<br />

Stillwater Sibanye is the new owner of the Burnstone gold mine near<br />

Balfour. Stonewall Resources runs the TGME Project, near the towns<br />

of Pilgrims Rest and Sabie. Stonewall has ambitious targets of going<br />

beyond production of 40 000 ounces from this and other historic mines<br />

in the area.<br />


Colliery Training College: www.ctctraining.org<br />

Minerals Council South Africa: www.mineralscouncil.org.za<br />

National Department of Mineral Resources and Energy:<br />

www.dmr.gov.za<br />

South African Institute of Mining and Metallurgy:<br />

www.saimm.co.za<br />

Having taken full control of<br />

its Barberton mines, Pan African<br />

improved its BEE position<br />

(Shanduka Gold is a 23.8%<br />

shareholder) and set about<br />

increasing its annual gold output<br />

to 100 000 ounces.<br />

Platinum is an important<br />

mineral for the modern economy.<br />

Two Rivers is a joint venture<br />

between Implats (46%) and<br />

African Rainbow Minerals. The<br />

operation is on the southern part<br />

of the eastern limb of the Bushveld<br />

Igneous Complex, south-west of<br />

Burgersfort.<br />

Northam Platinum, which<br />

has assets on both limbs of the<br />

Bushveld Igneous Complex, has<br />

purchased the Everest mine<br />

from Aquarius Platinum. Everest<br />

is adjacent to Northam’s existing<br />

Booysendal mine.<br />

Jubilee Platinum has sold its<br />

Smelting and Refining business<br />

in Middelburg to Siyanda<br />

Resources for R110.5-million.<br />

Sylvania Platinum now has seven<br />

PGM recovery plants that extract<br />

chrome from tailings on both sides<br />

of the Bushveld Igneous Complex.<br />

Lydenburg is home to the Lion<br />

ferrochrome smelter that is a joint<br />

venture between Glencore and<br />

Merafe Resources. Assmang, the<br />

joint venture between ARM Ferrous<br />

and the JSE-listed Assore, operates<br />

a chrome mine (Dwarsrivier) and a<br />

ferrochrome plant where chrome<br />

alloys are made.<br />

The Manganese Metal<br />

Company (MMC) in Nelspruit<br />

is the largest producer of pure<br />

electrolytic manganese in the<br />

world. MMC is owned by Samancor<br />

(51%) and Bilston Investments<br />

owns the balance.<br />

41<br />

MPUMALANGA BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


Fast making strides in mining<br />

<strong>Mpumalanga</strong> <strong>Business</strong> spoke with two trailblazing miners who<br />

work at Exxaro’s Leeuwpan Coal Mine, Johanne Struwig and<br />

Bontle Mtshengu. Plant Manager Struwig was a finalist in the<br />

Top Young Achiever of the Year category of the <strong><strong>20</strong>19</strong> Standard<br />

Bank Top Women of the Year awards, while Engineering<br />

Manager Mtshengu won the award in the category, Top Gender<br />

Empowered Organisation: Resources.<br />

Bontle Mtshengu<br />


Bontle’s 18-year journey in<br />

mining has encompassed<br />

iron ore, minerals sands,<br />

gold, platinum and now coal.<br />

Her promotion in <strong>20</strong>17 to<br />

Engineering Manager, where<br />

she now leads a team of more<br />

than <strong>20</strong>0, made her the first<br />

female to hold that post in<br />

Exxaro. She started her career<br />

as a mechanical technician<br />

and worked her way up to<br />

become an engineer. She<br />

has a Government Certificate<br />

of Competency (GCC) mines<br />

and works, and a diploma in<br />

mechanical engineering and is<br />

studying for a BTech.<br />

How did you choose mining as a career?<br />

BM: Born in a rural small village called Cassel in the Northern<br />

Cape, my mother was a teacher in a primary school and my dad<br />

a truck operator in one of the mines. I found myself in a boarding<br />

school 700km away from home and coincidentally landed in a<br />

class with technical subjects in Grade 9. I fell in love with subjects<br />

like technical drawing and electricity. Mining became a natural<br />

choice when I was given an opportunity to do in-service training<br />

in one of the mining houses and thereafter received a bursary.<br />

JS: I think the mining industry chose me. I initially studied in the<br />

chemistry field. After I got a bursary from Exxaro, I started to work in<br />

mining and fell in love with operations and the culture.<br />

When did you know this was a good choice?<br />

BM: I eventually got exposed to maintenance management<br />

environment and truly fell in love with that. The training I received<br />

was remarkable. When I acquired the government certificate of<br />

competency (GCC) is when I knew I had made a good choice: having<br />

that legal appointment and seeing one’s contribution to the industry<br />

is the most satisfying feeling.<br />

JS: On Leeuwpan mine, I have had the opportunity to be involved<br />

in value chain operations from a technical point of view as well as<br />

business. I fell in love with the adrenaline of operations, the pride of<br />

mobilising people and overcoming a very challenging environment.<br />

Did you encounter obstacles on your mining career path?<br />

BM: Most women were recruited into positions and left there to fend<br />

for themselves. Basic needs like sanitary facilities, personal protective<br />

equipment (PPE) and safety underground were not available for<br />

women. Men were not made ready for this change. It was a shock<br />

to everyone.<br />

JS: I was privileged that Leeuwpan created a positive environment<br />

for my development. I had to learn through tough mistakes how to<br />

develop emotional intelligence. I started out trying to conform and<br />

it was only after I showed my own identity and being OK with that,<br />

that I really flourished.<br />

MPUMALANGA BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />


What has helped you the most along the way?<br />


BM: Ensuring that I’m competent at what I do, always asking<br />

questions and continuously learning new things. Certain people I<br />

met along the way, currently my two leaders (Mangaliso Sethethi<br />

and Baltimore Miles) and my mentor (Hemuna Bhola) have been<br />

playing a vital role in my development.<br />

JS: The most important building block of my career was mentoring.<br />

Through these mentoring relationships I found my rhythm allowing<br />

me to dance to beat of my own drum.<br />

Johanne Struwig<br />


With a Bachelor’s degree<br />

in Chemical Engineering,<br />

Johanne was the first women<br />

(and youngest) Plant Manager<br />

to be appointed by Exxaro<br />

Resources at the Leeuwpan<br />

Coal operation. With a speciality<br />

in mineral processing, she also<br />

has diplomas in management<br />

and training in risk management.<br />

She previously worked as a<br />

metallurgical engineer and has<br />

been applying metallurgical<br />

principles to optimise coal<br />

beneficiation strategies. As a<br />

leader, Johanne has always built<br />

solid relationships with internal<br />

and external stakeholders.<br />

How did you feel to be nominated for the awards?<br />

BM: This was a very humbling experience; this award means a lot for<br />

me. It means my contribution is recognised. However, this also comes<br />

with a vast responsibility to pave a way for young upcoming women<br />

to ensure they don’t go through the same experience I went through.<br />

JS: It was probably one of the proudest moments of my life. I<br />

am truly humbled and want to thank Mangaliso Sethethi (LPN BU<br />

manager) for believing in me and making me believe in myself.<br />

Is the current mining environment better for women?<br />

BM: The industry has made significant strides in executing<br />

transformation and promoting gender. A gap still exists in converting<br />

women in technical positions to senior and board management levels.<br />

More work must be done to create a space that is more accommodating<br />

to everyone, a space where diversity is embraced and a place where<br />

our differences make us strong.<br />

JS: I suppose it is. Over the past 10 years, women went from<br />

being tolerated to being accepted and even respected. Women<br />

are not appointed for the sake of statistics but as decision-makers<br />

and change-drivers in core positions. However, the way women<br />

approach the mining environment has also evolved. Women are<br />

more confident, which allows them to really show their competence.<br />

LPN specifically has also embraced diversity to the fullest and proved<br />

the value it adds to a business.<br />

What should be prioritised to empower women?<br />

BM: Companies need to develop clear strategies that focus on<br />

development and empowerment of women within businesses. This<br />

could include retention, fast-tracking programmes and executive<br />

mentorship programmes. Women also need to embrace the challenge<br />

and use the opportunity to empower themselves and others.<br />

JS: Growing and making a difference in the mining industry requires<br />

confidence, it requires women to be authentic. It requires us to be<br />

strong under pressure. It also requires us to remain women because<br />

that is what makes all the difference. As female leaders we have<br />

the responsibility to teach this to every lady that wants to make it<br />

in this industry through mentoring and coaching.<br />

43<br />

MPUMALANGA BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


Manufacturing<br />

Government wants to promote township and rural<br />

manufacturing.<br />


FLSmidth has doubled the<br />

size of its Delmas facility.<br />

<strong>Mpumalanga</strong> has a diverse manufacturing sector. The<br />

Lowveld area supports food and beverage enterprises<br />

and timber processing. Approximately 70% of jobs in the<br />

manufacturing sector are in food and forestry.<br />

Standerton has textile-manufacturing capacity in the form of<br />

Standerton Mills. It is also home to several plants that use local raw<br />

materials: Nestlé has an infant-cereal manufacturing plant, RCL runs<br />

farms in the Carolina district and Early Bird is prominent. McCain and<br />

PepsiCo (Simba) have plants that use the province’s plentiful potato<br />

crop.<br />

TSB Sugar runs two large mills and produces fruit juices through<br />

a subsidiary company. Nelspruit is the centre of the province’s foodprocessing<br />

cluster.<br />

The presence of Ferrometals (a Samancor company) in Emalahleni<br />

means that <strong>Mpumalanga</strong> is an important place for metals and machinery<br />

manufacturing. It produces charge chrome and is one of the largest<br />

ferrochome plants in the world. Joint ventures such as Crometals (Pty)<br />

Ltd, Poschrome (Pty) Ltd and Elkem Ferroveld operate from the site.<br />

Most manufacturing in the province takes place in the Highveld<br />

where there is access to chrome, steel and coal.<br />

In the course of an upgrade, FLSmidth has also doubled the size of its<br />

Delmas Supercentre to 10 500m².<br />

The company makes equipment<br />

for materials handling and mineral<br />

processing. The centre also hosts a<br />

training facility and handles repairs<br />

for customers.<br />

In Middelburg, Thos Begbie<br />

makes a variety of products at its<br />

heavy engineering works. Graphite<br />

Freezeline Solutions opened a new<br />

graphite facility within the Begbie<br />

property in <strong>20</strong>18.<br />

Thos Begbie has announced<br />

an expansion into Zambia, where<br />

it will service and repair furnace<br />

components.<br />

Middelburg-based Columbus<br />

Stainless is a major supplier of<br />

stainless-steel products to the<br />

domestic and international market.<br />

About 25% of the company’s<br />

production is sold domestically.<br />

The Manganese Metal<br />

Company in Nelspruit is the largest<br />

producer of pure electrolytic<br />

manganese metal in the world.<br />

Delta EMD, in the same town, is<br />

one of the biggest producers of<br />

electrolytic manganese dioxide, a<br />

material used in the manufacture<br />

of alkaline batteries.<br />

The chemicals and liquid<br />

fluids complex of Sasol at<br />

Secunda is a vital component of<br />

MPUMALANGA BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />



<strong>Mpumalanga</strong>’s manufacturing sector. The company has two propylene<br />

manufacturing plants and recently completed two major investments<br />

aimed at improving flows and expanding production.<br />

Propylene is an input for polypropylene which is used in packaging,<br />

automotive components and textiles. The market is growing in South<br />

Africa at 4% per annum, roughly the same rate as the global market.<br />

A large agri-processing fruit hub is planned for the province. Located<br />

in the Nkomazi Special Economic Zone, the proposed hub, with an<br />

estimated value of R10-billion, would deal with the whole value chain<br />

from growing fruit through to processing, marketing and logistics.<br />

Having manufacturing facilities at the core of the hub will enable<br />

a variety of businesses to be established, both upstream (to supply<br />

the plant) and downstream (to deal with the products of the plant).<br />

Creative thinking kicked in when Highveld Steel’s troubles reached<br />

the tipping point in <strong>20</strong>15. Aside from the business rescue process,<br />

which has allowed some production to restart, there is some irony<br />

in the that fact that the 1 000ha property has been repurposed as a<br />

multi-purpose site for industry and commerce. Called the Highveld<br />

Industrial Park, this project has had the effect of promoting a diversity<br />

of manufacturing enterprises, something which has been a priority<br />

for economic planners for many years.<br />

Stockpiles of coal and vanadium are being sold off, but two iron<br />

plants and a steel plant offer fully-equipped metallurgical and steelmaking<br />

facilities, supported by environmental monitoring services<br />

and metallurgical and chemical laboratories.<br />

The structural mill of Evraz Highveld Steel in Witbank was officially<br />

relaunched in June <strong>20</strong>17 after ArcelorMittal South Africa signed a<br />

contract to supply blooms and slabs for the mill to make into heavy<br />

structural steel. Evraz Highveld went into business rescue in <strong>20</strong>15.<br />

ArcelorMittal has now exercised its right to purchase the mill outright.<br />

Future plans<br />

The provincial government has declared that it is determined “to turn<br />

<strong>Mpumalanga</strong> into a manufacturing hub for South Africa and the rest<br />

of the continent”. To that end, partnerships with Russia, China and Italy<br />

have been established to improve local knowledge of technology and<br />

to become globally competitive.<br />

This strategy could be said<br />

to have paid off when it was<br />

announced that Minsk Tractor<br />

Works is to establish an assembly<br />

plant in the province.<br />

Belarus and Oman are two of<br />

the other countries with which<br />

<strong>Mpumalanga</strong> is engaged with.<br />

A key objective of the provincial<br />

government’s <strong>Mpumalanga</strong><br />

Economic Growth and<br />

Development Path (MEGDP) is<br />

to expand the industrial base<br />

of the provincial economy.<br />

To do this, policy-makers are<br />

focusing on beneficiation, agriprocessing<br />

and value chain<br />

development.<br />

Samancor Chrome (which<br />

runs Ferrometals) is the secondlargest<br />

ferrochrome producer in<br />

the world with three plants, two<br />

of which are in <strong>Mpumalanga</strong>:<br />

eMalahleni (Witbank) and<br />

Middelburg.<br />

A Social Enterprise<br />

Development Programme has<br />

been designed by the Provincial<br />

Government of <strong>Mpumalanga</strong><br />

to help township and rural<br />

manufacturing businesses grow<br />

in the steel fabrication sector. This<br />

will include finished products<br />

such as door frames, window<br />

frames and concrete products<br />

like paving bricks, building bricks<br />

and blocks.<br />


Highveld Industrial Park: www.highveldindustrialpark.co.za<br />

<strong>Mpumalanga</strong> Economic Growth Agency: www.mega.gov.za<br />

South African Iron and Steel Institute: www.saisi.co.za<br />

45<br />

MPUMALANGA BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


Transport and logistics<br />

The first phase of the Moloto Corridor is nearly complete.<br />

A<br />

new flight has been added to SA Airlink’s connections<br />

between <strong>Mpumalanga</strong> and Cape Town. In addition to<br />

the regular early-morning flights out of Nelspruit Kruger<br />

<strong>Mpumalanga</strong> International Airport (KMIA) with a lateafternoon<br />

return flight, an early-morning Saturday flight has been<br />

added. This leaves Nelspruit KMIA at 7h40 and arrives in Cape Town<br />

at 10h05 and is targeted at the leisure traveller.<br />

Nelspruit KMIA is the province’s main airport, serving both the<br />

capital and being a convenient entry point to the southern part<br />

of the Kruger National Park. Airlink has direct flights to and from<br />

Johannesburg, Cape Town, Durban and Livingstone in Zimbabwe.<br />

Hoedspruit Eastgate Airport is a popular destination for travellers<br />

on their way to private game lodges and is also near the Orpen Gate<br />

of the Kruger National Park. SA Express flies to Hoedspruit from<br />

Johannesburg and Cape Town.<br />

Middelburg Airfield is one of the larger alternate airports in the<br />

province, boasting a 1.9km runway that can accommodate a 737. The<br />

annual Middelburg Air Show is held in June. Many game lodges have<br />

airstrips and helipads. SA Red Cross Air Mercy Service operates out<br />

of the old Nelspruit airport just south of the city.<br />

Coal haulage puts immense pressure on <strong>Mpumalanga</strong>’s roads<br />

network, particularly in the Gert Sibande District and the Nkangala<br />

District. Road improvement plans aim to simultaneously fix rural<br />

roads and make better connections between rural and urban areas.<br />

The South African National Roads Agency (Sanral) has presented its<br />

long-term vision, Horizon <strong>20</strong>30, as part of its contribution to the National<br />

Development Plan <strong>20</strong>30. Road improvements which have boosted<br />


SA Airlink has a new flight to<br />

Cape Town.<br />

the transport infrastructure of<br />

<strong>Mpumalanga</strong> recently include<br />

the upgrades to the R570 (linking<br />

Malelane on the N4 to Swaziland),<br />

the N11 (Hendrina-Middelburg)<br />

and part of the vital R573 Moloto<br />

Road, which carries huge volumes<br />

of traffic to Gauteng and Limpopo.<br />

Sanral’s three-year plan for the<br />

R573 allocates R1-billion to the<br />

project.<br />

A clause in Sanral’s contract<br />

with big companies to work<br />

on the R573 ensures that<br />

small companies are involved.<br />

Raubex Construction has<br />

formed a joint venture with Biz<br />

Afrika, Khuluphala Tradings and<br />

Themolo <strong>Business</strong> Enterprise.<br />

The R573 forms part of the<br />

Moloto Corridor, which connects<br />

MPUMALANGA BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />



the province with Gauteng . The long-term aim is to create a coordinated<br />

road and rail corridor including rapid rail facilities. With about 50 000<br />

motor vehicles currently using the route every day, it represents one of<br />

the busiest parts of South Africa’s road network. The plan to upgrade the<br />

corridor is one of 18 national Strategic Infrastructure Projects (SIPs). Not<br />

only will the corridor provide better linkages between the provinces and<br />

boost development along the route but improve access to the mineral<br />

reserves of the Waterberg region.<br />

The first phase of the Moloto Corridor Development Programme,<br />

which involves the upgrading of road infrastructure is nearly<br />

complete. Accidents have been reduced as a result of the R3.7-<br />

billion first phase.<br />

The Maputo Development Corridor is Africa’s most advanced<br />

spatial development initiative (SDI) comprising road and rail<br />

infrastructure, border posts, and port and terminal facilities. Run<br />

by the Maputo Development Corridor Logistics Initiative (MCLI),<br />

the corridor runs from just outside Pretoria in Gauteng, through<br />

Witbank, Middelburg and Nelspruit in <strong>Mpumalanga</strong>, and on to<br />

Maputo in Mozambique.<br />

The Maputo Development Corridor will receive a further boost<br />

with the upgrading of the Komatiepoort Dry Port into a Special<br />

Economic Zone. The National Department of Trade, Industry and<br />

Competition (the dtic) has designated the <strong>Mpumalanga</strong> Economic<br />

Growth Agency (MEGA) as the lead agent to develop the SEZ.<br />

Rail<br />

Another infrastructural development that will boost trade is Transnet’s<br />

planned Swaziland Rail Link (SwaziLink) project. A 146km railway line<br />

between Lothair in <strong>Mpumalanga</strong> and Sidvokodvo in Swaziland will<br />


Kruger <strong>Mpumalanga</strong> International Airport: www.kmiairport.co.za<br />

Maputo Corridor Logistics Initiative: www.mcli.co.za<br />

Middelburg Airfield: http://middelburgaeroclub.com<br />

Railroad Association of South Africa: www.rra.co.za<br />

South African National Roads Agency Ltd: www.sanral.co.za<br />

allow for better movement of<br />

freight between the countries<br />

and provide a possible alternative<br />

route for freight through to<br />

Richards Bay.<br />

The <strong>Mpumalanga</strong> rail system<br />

generates more freight traffic<br />

than any other province in<br />

South Africa and is of great<br />

strategic value. Transnet Freight<br />

Rail is the main operator and<br />

the chief freight movements<br />

are coal, fuel, chemicals, timber,<br />

iron and chrome ore, fruit,<br />

maize, animal feed, wholesale<br />

and retail goods, steel,<br />

building supplies, fertiliser and<br />

consumer goods. The port of<br />

Maputo in Mozambique is an<br />

attractive option for freight.<br />

The coal terminal at Richards<br />

Bay in KwaZulu-Natal receives<br />

the majority of the coal that is<br />

mined in the province.<br />

A new rail siding is being<br />

built to service the Majuba<br />

Power Station. The 68km single<br />

heavy-haul track will be a<br />

private line that is projected to<br />

cost in the region of R5-billion<br />

and create between 3 500 and<br />

5 000 jobs.<br />

Private rail operator Sheltam<br />

services the coal-mining and<br />

ferrochrome-metal industries<br />

from regional headquarters in<br />

Witbank. The company runs<br />

systems, hauls raw materials<br />

and rebuilds and refurbishes<br />

locomotives.<br />

47<br />

MPUMALANGA BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


Tourism<br />

The <strong>Mpumalanga</strong> Liberation Heritage Route<br />

has been launched.<br />


Training programmes are empowering<br />

rural communities.<br />

Kruger National Park is <strong>Mpumalanga</strong>’s most famous tourism<br />

asset. Other notable landmarks include God’s Window and<br />

the Blyde River Canyon but the province’s newest asset is<br />

ancient.<br />

A three-billion-year-old micro-fossil found in the Makhonjwa<br />

Mountains near Barberton and the border with Swaziland is thought<br />

to be the oldest sign of life on the planet. Now the Makhonjwa<br />

Mountains, themselves somewhere between 3.2-billion and<br />

3.6-billion years old, have been declared a World Heritage Site by<br />

the United Nations Educational‚ Scientific and Cultural Organisation<br />

(UNESCO). The tourist offering near Barberton has been branded<br />

the Genesis Route.<br />

This brings to 10 the number of World Heritage Sites in South<br />

Africa and opens up the possibility of a new type of niche tourism<br />

for <strong>Mpumalanga</strong>. Funds for conservation of the area will be made<br />

available from the World Heritage Fund.<br />

Visitors to Graskop Gorge can now drop 50m into the gorge via a<br />

glass elevator which was built by Enza Construction. The R25-million<br />

Graskop Gorge Tourism Attraction Centre contains a <strong>20</strong>0-seater<br />

restaurant, an overhanging veranda, a ticket office, curio shops and<br />

an area for informal traders to sell their wares.<br />

Although the province already caters for motor-rally enthusiasts,<br />

cyclists, runners, walkers, fishers, horse-riders, tree-gliders, abseilers,<br />

white-water rafters and rock climbers, there is still potential for more<br />

investment in the ecotourism and<br />

adventure tourism subsectors.<br />

Another option for tourists was<br />

recently added to the province’s<br />

portfolio, the <strong>Mpumalanga</strong><br />

Liberation Heritage Route.<br />

Twenty-five young women<br />

from rural areas are receiving<br />

training in hospitality as part<br />

of the Hazyview Project, an<br />

offshoot of the Travel and<br />

Tourism Excellence Academy.<br />

The programme is jointly<br />

sponsored by Amadeus, a travel<br />

technology company, Economic<br />

Development Solutions and the<br />

Thebe Tourism Group.<br />

Hazyview is near the Kruger<br />

National Park and the students<br />

are expected to be employed<br />

at a new hotel at Skukuza when<br />

they graduate. The Good Work<br />

Foundation (GWF) is running<br />

the programme at its Hazyview<br />

Digital Campus, in partnership<br />

with the South Africa College of<br />

Tourism.<br />

The province has plans to<br />

attract international tourists from<br />

nearby and from far away. The<br />

tourist authorities of Swaziland<br />

and Mozambique have agreed to<br />

explore the possibilities of joint<br />

marketing through the TriLand<br />

Brand Initiative.<br />

MPUMALANGA BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />



The provincial government department responsible for tourism is<br />

exploring opportunities via the BRICS initiative. It believes that visitor<br />

numbers from Russia could increase dramatically if a direct flight were<br />

introduced between Moscow and <strong>Mpumalanga</strong>.<br />

Thebe Tourism has three projects in the province, the Kruger Shalati<br />

(a luxury train on the Selati Bridge), the Blyde Canyon Community<br />

Project and a proposed development for Lisbon Estate which is<br />

adjacent to the Kruger National Park. The Lisbon development is<br />

projected to comprise two hotels, retail, hospitality and dining<br />

facilities and staff housing associated with the Lisbon Estate.<br />

At Blyde River Canyon, Thebe has signed an agreement with<br />

local communities with land claims in the Blyde River Canyon<br />

Nature Reserve which will involve them as shareholders in the new<br />

developments. God’s Window is to receive a Skywalk, the facilities<br />

at Bourke’s Luck Potholes will be rejuvenated, a cable car project is<br />

planned for Three Rondavels and another hotel is planned to boost<br />

accommodation options in the area.<br />

All of these projects have been registered with National Treasury<br />

as public-private partnerships. They are regarded as priority projects<br />

by the provincial government.<br />

The Provincial Government of <strong>Mpumalanga</strong> is looking for more<br />

private partners to invest in a range of ambitious projects to boost an<br />

already active sector that has several superb tourism assets, ranging<br />

from the iconic Kruger National Park (one of about 70 parks and<br />

reserves) to bird-watching, music festivals, car rallies and casinos.<br />

The provincial investment agency, MEGA, has packaged many<br />

tourism investment opportunities. The underlying principle in each<br />

Bourke’s Luck Potholes<br />


<strong>Mpumalanga</strong> Gaming Board: www.mgb.org.za<br />

<strong>Mpumalanga</strong> Tourism & Parks Agency: www.mtpa.co.za<br />

South African National Parks: www.sanparks.co.za<br />

South African Tourism: www.southafrica.net<br />

South African Tourism Services Association: www.satsa.com<br />

case is a form of public-private<br />

partnership where the agency<br />

would assist in getting land-use<br />

and other legal requirements,<br />

and perhaps in seeing that basic<br />

infrastructure was laid on, then<br />

the developer would build and<br />

manage a tourism facility.<br />

A transaction adviser has<br />

been appointed to flesh out<br />

these proposals for investable<br />

tourism products. An example of<br />

infrastructure investment from<br />

the government’s side is the<br />

upgrading of the Manyeleti Resort.<br />

Other provincial plans<br />

regarding tourism involve<br />

promoting the province as a<br />

convention venue. A Convention<br />

Bureau has been established and<br />

the city of Mbombela is being<br />

encouraged to build a large centre.<br />

Forever Resorts has a big<br />

presence in the province,<br />

catering to many caravans and<br />

campers and holiday-makers<br />

wanting to stay in chalets. There<br />

is also a four-star Forever Resorts<br />

Mount Sheba. The Graceland<br />

Hotel Casino and Country Club<br />

is a Peermont resort in Secunda.<br />

Tsogo Sun has six hotels in<br />

the province, ranging from two<br />

StayEasys to Southern Sun The<br />

Ridge, which is attached to the Ridge<br />

Casino in Witbank (Emalahleni).<br />

Tsogo runs a further two resorts in<br />

Hazyview (Sabi River Sun Resort)<br />

and White River (Pine Lake Resort).<br />

Protea Hotels by Marriott has<br />

three properties in <strong>Mpumalanga</strong>,<br />

including Protea Hotel Kruger<br />

Gate, Nelspruit and Hazyview. At<br />

White River, Premier Hotel The<br />

Winkler is <strong>20</strong> minutes’ drive from<br />

the Numbi Gate of the Kruger<br />

National Park.<br />

49<br />

MPUMALANGA BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


Banking and financial<br />

services<br />

Digital banking is on the rise.<br />

Embalenhle has a new Ubank branch. Situated at the Mall@<br />

Emba, the branch will serve customers from Secunda and<br />

other areas such as those that used to bank at a branch at<br />

the Kinross mine, which has been closed.<br />

In line with modern trends towards digital banking, the new Ubank<br />

branch has internal and external facing digital walls. The screens<br />

promote new products and campaigns, give customers information<br />

and provide financial education. A feature that is designed to support<br />

local artists is the Feature Wall.<br />

All of the big retail banks (Nedbank, Absa, Standard Bank, Capitec<br />

and First National Bank) are present in the province’s major towns.<br />

Agriculture is an important focus area for banks, and most have<br />

specialised divisions such as Nedbank Agribusiness.<br />

TWK Agri offers financing and insurance together with the usual<br />

suite of agricultural services. Afgri, one of the country’s biggest<br />

agricultural companies, offers financial services (financing and<br />

insurance) under the brand Unigro. It has another service called Gro<br />

Capital Financial Services which offers more complicated products.<br />

Another source of funding for farmers is the Land and Agricultural<br />

Development Bank of South Africa (Land Bank), a developmentfinance<br />

institution that falls under the Ministry of Finance. Standard<br />

Bank has a new black economic empowerment agricultural fund<br />

designed to support emerging farmers. The R500-million fund is<br />

designed to connect farmers who have received farms in land reform<br />

projects to agri-businesses that will buy their produce.<br />

The first new banking licence in nearly two decades was issued<br />

in <strong>20</strong>17, to TymeDigital. The bank has no physical branches although<br />

Tyme’s Money Transfer product, which it launched in <strong>20</strong>16, is available<br />

at Boxer and Pick n Pay. The banking licence is the first to be issued<br />

since Capitec was granted a licence by the South African Reserve<br />

Bank in 1999.<br />


Financial Services Board: www.fsb.co.za<br />

Post Bank: www.postbank.co.za<br />

Public Investment Corporation: www.pic.gov.za<br />


New banking licences have<br />

been granted.<br />

In a province with a high<br />

proportion of rural citizens such<br />

as <strong>Mpumalanga</strong>, the prospect of<br />

Postbank being upgraded to a<br />

full-service bank is positive news.<br />

The current Postbank focusses<br />

on taking deposits and savings<br />

accounts. Postbank has secured<br />

a R3.7-billion loan to enable it to<br />

open its own loan book. The large<br />

geographical footprint of the Post<br />

Office will make the bank easily<br />

accessible to even remote parts of<br />

the country.<br />

Banks are working hard to<br />

offer products to the previously<br />

unbanked. Nedbank has<br />

partnerships with shops such<br />

as Boxer Stores and Pick n Pay<br />

where customers can have access<br />

to financial services in previously<br />

unserviced areas.<br />

MPUMALANGA BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />



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Development finance and<br />

SMME support<br />

Many small businesses operate in trade and accommodation.<br />

Support for the small business sector is not always easy to<br />

measure. Advice and mentoring are important but it’s in<br />

turnover figures where concrete results can be seen.<br />

Bushbuckridge entrepreneur Freddy Sibuyi (pictured)<br />

took full advantage of the advice and support that Tholoana Enterprise<br />

Programme of the SAB Foundation had to offer. Turnover of Freddy and<br />

Sons Maintenance and Engineering jumped from a little over R602 000<br />

to more than R2.2-million and he added 10 employees to his original<br />

staff complement of five.<br />

The SAB Foundation has provided over R6-million in grant funding<br />

and business support to 60 entrepreneurs in <strong>Mpumalanga</strong>. Collective<br />

turnover has increased by 324% and 121 new jobs have been created.<br />

Research done by the Small Enterprise Development Agency (Seda)<br />

shows that a high percentage of SMMEs in <strong>Mpumalanga</strong> are in the trade<br />

and accommodation sector. Whereas the national figure is about 43%,<br />

in <strong>Mpumalanga</strong> it is closer to 50%.<br />

Seda supports several incubators in the province: Furntech, furniture<br />

manufacturing, White River; Mobile Agri-Skills Development & Training<br />

(MASDT), agricultural training, Nelspruit; <strong>Mpumalanga</strong> Stainless Initiative<br />

(MSI), stainless steel processing, Middelburg (with Columbus Stainless);<br />

Timbali floriculture, Nelspruit; Ehlanzeni TVET College Rapid Incubator<br />

Renewable Technologies, Nelspruit.<br />

Seda is a subsidiary of the National Department of Small <strong>Business</strong><br />

Development (DSBD). Seda is not a financial agency, focussing rather on<br />

training and administrative support, although the agency will help SMMEs<br />

get in touch with financial bodies.<br />

Sappi’s long-term Ngodwana mill project will spend more than<br />

R600-million on procuring goods and supplies from broad-based<br />

black economic empowered companies, of which R51-million will go<br />

to SMMEs.<br />

Other companies supporting SMMEs through their buying chain<br />

include Woolworths and Anglo American. Woolworths is funding<br />


<strong>Mpumalanga</strong> Economic Growth Agency: www.mega.gov.za<br />

<strong>Mpumalanga</strong> Stainless Initiative: www.mpstainless.co.za<br />

Small Enterprise Development Agency: www.seda.org.za<br />

TechnoServe to ensure that small<br />

tomato growers can grow produce<br />

that will meet the demanding<br />

standards of the retailer, and to help<br />

them expand production.<br />

Anglo American’s Zimele runs<br />

four enterprise development and<br />

investment funds. Zimele runs<br />

hubs related to the supply chains<br />

of platinum, thermal coal and, with<br />

Mondi, forestry.<br />

The <strong>Mpumalanga</strong> Economic<br />

Growth Agency (MEGA) is the<br />

implementing agent of the<br />

provincial government’s SMME<br />

support policy.An agreement has<br />

been signed with Standard Bank<br />

to launch an SME Fund with a<br />

capitalisation of R500-million.<br />

MPUMALANGA BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />


Kruger Lowveld Chamber<br />

of <strong>Business</strong> and Tourism<br />

The voice of business in Ehlanzeni.<br />


As the official representative body of business and tourism in<br />

the Kruger Lowveld (Ehlanzeni District), our main mandates<br />

are to promote the region as a tourism and investment<br />

destination, to provide a diverse suite of networking and<br />

marketing opportunities for our members, and to represent and speak<br />

on behalf of the business and tourism community of our area. We do<br />

this by building and maintaining meaningful relationships with all<br />

spheres of government as well as like-minded organisations, and by<br />

acting as liaison between these entities and the business community.<br />

KLCBT’s president is Mr Oupa Pilane (pictured).<br />

Area of operation<br />

The Kruger Lowveld covers the Ehlanzeni District of <strong>Mpumalanga</strong>,<br />

including the following local municipalities: City of Mbombela, Thaba<br />

Chweu, Nkomazi and Bushbuckridge, as well as the southern part of<br />

Kruger National Park and the surrounding private nature reserves.<br />

Member benefits<br />

Listing on website, Pay-to-Play participation in various marketing services<br />

and projects, weekly newsletter, invitations to all KLCBT events, advocacy and<br />

representations made by KLCBT on behalf of members, access to preferential<br />

arrangements negotiated by KLCBT with service providers, brochure display at<br />

Crossing Centre office, various sponsorship options, access to tender information.<br />

We are actively involved in the following advocacy campaigns:<br />

Service delivery: Public participation in various forums where government<br />

engages with stakeholders regarding budgets, planning and legislation.<br />


Physical address: KLCBT House, Crossing Centre, Nelspruit<br />

Postal address: Private Bag X 11326, Nelspruit 1<strong>20</strong>0<br />

Tel: +27 13 755 1988<br />

Fax: +27 13 753 2986<br />

Email: business@klcbt.co.za and tourism@klcbt.co.za<br />

Website: www.klcbt.co.za<br />

Promote home-grown businesses<br />

through education processes, research,<br />

maintaining a database,<br />

lobbying for stricter regulations<br />

on large shopping chains, engaging<br />

large chains to buy local and<br />

to spend their CSI budgets locally.<br />

Local Economic Development:<br />

We are assisting with incubation<br />

in seven main corridors, mainly<br />

adding additional tourism<br />

products.<br />

Anti-corruption: Several<br />

successful initiatives reduced<br />

roadside corruption.<br />

Water: Bulk-water supply faces a<br />

future crisis and lobbying for the<br />

increase of storage capacity is<br />

beginning to show success.<br />

Roads and public attractions:<br />

Require upgrades and investment.<br />

Safety and security: A concern<br />

for all regions in SA.<br />

53 MPUMALANGA BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong> <strong>20</strong>17/18


Education and training<br />

A new boarding school will assist rural children.<br />


85 students are studying in<br />

Russia.<br />

The opening of the Thaba Chweu Boarding School in the<br />

Ehlanzeni District will make access to education easier for rural<br />

children who would otherwise have to travel long distances.<br />

Two new schools will also be completed in <strong><strong>20</strong>19</strong>, in the City<br />

of Mbombela and in eMalahleni.<br />

The Provincial Government of <strong>Mpumalanga</strong> has teamed up with<br />

the Manufacturing, Engineering and Related Services Sector SETA<br />

to send 85 students to Russia. The SETA will pay for 35 students in<br />

areas that have been identified as critical, namely medicine, civil<br />

engineering, veterinary science, aviation/aeronautical studies and<br />

information technology.<br />

Sasol offers an all-inclusive bursary for students in engineering,<br />

science and accounting. The bursary also has performance-based<br />

awards and allowances for things like laptops and calculators. Sasol<br />

has also committed to taking on qualified apprentices from the Hydra<br />

Arc academy in Secunda.<br />

The University of <strong>Mpumalanga</strong> enrolled 3 2<strong>20</strong> students in <strong><strong>20</strong>19</strong>, a<br />

marked increase on humble beginnings in <strong>20</strong>14 when the university<br />


<strong>Mpumalanga</strong> Department of Education:<br />

www.mpumalanga.gov.za/education<br />

Sasol bursaries: www.sasolbursaries.com<br />

Southern African Wildlife College: www.wildlifecollege.org.za<br />

University of <strong>Mpumalanga</strong>: www.ump.ac.za<br />

started life with 167 students. The<br />

university has added bachelor’s<br />

degrees in arts and commerce<br />

to its initial offering of academic<br />

courses in education and agriculture<br />

and a diploma in hospitality.<br />

Geology will soon be offered as<br />

part of a BSc.<br />

The main campus is at<br />

Mbombela with satellites at<br />

Siyabuswa (a former education<br />

college) and KaNyamazane,<br />

which hosts hospitality studies.<br />

<strong>Mpumalanga</strong> has three<br />

Technical and Vocational<br />

Education and Training (TVET)<br />

Colleges, with an enrolment of<br />

over 36 000. UNISA, the Tshwane<br />

University of Technology and the<br />

Vaal University of Technology also<br />

have satellite campuses in the<br />

province.<br />

The <strong>Mpumalanga</strong> Regional<br />

Training Trust (MRTT) is a Section<br />

21 company with several sites<br />

in the province, including a<br />

Hospitality and Tourism Academy<br />

at Karino outside Nelspruit. The<br />

trust’s construction-training facility<br />

is accredited as a Construction<br />

Centre of Excellence. The<br />

Southern African Wildlife College<br />

is located near the Orpen Gate on<br />

the edge of the Kruger National<br />

Park.<br />

MPUMALANGA BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong> 54

Gert Sibande District<br />

Municipality<br />


A community-driven district of excellence and development.<br />

Vision<br />

GSDM is customer focussed. The vision is the municipality’s point of<br />

reference throughout each financial year in all the municipality’s plans,<br />

programmes and activities. The vision ensures that the District operates<br />

within its powers of function which is to support and coordinate local<br />

municipalities.<br />

Mission<br />

Led by Executive Mayor<br />

Councillor Muzi Chirwa,<br />

with its offices located<br />

in Ermelo right at the<br />

heart of the district, Gert<br />

Sibande District Municipality<br />

(GSDM) is the largest of the<br />

three districts in <strong>Mpumalanga</strong><br />

Province at 31 841 km², covering<br />

40% of the <strong>Mpumalanga</strong><br />

Province’s land mass.<br />

According to Stats SA (<strong>20</strong>16<br />

Community Survey), Gert Sibande’s<br />

population increased from 1043 194<br />

in <strong>20</strong>11 to 1 135 409 people in <strong>20</strong>16.<br />

This makes the GSDM the smallest<br />

district in terms of population<br />

among the three districts in the<br />

province.<br />

Seven local municipalities<br />

make up the District Municipality,<br />

which is traversed by several<br />

major roads including the N11,<br />

the N17 and the N3, the main<br />

road connecting Gauteng with<br />

the coast.<br />

To support and coordinate our local municipalities to provide excellent<br />

services and development. Some of the district’s major towns are<br />

Balfour, Carolina, Ermelo, Evander, Secunda, Standerton, Wakkerstroom<br />

and Mkhondo (Piet Retief).<br />

The District is gradually growing its reputation for its range of<br />

innovative initiatives such as the establishment of the water quality<br />

laboratory, purchase of the pothole patching truck, supporting the<br />

development of cooperatives and its excellence in rendering municipal<br />

health services.<br />


Physcal address: Corner Joubert and Oosthuise Streets,<br />

Ermelo, South Africa<br />

Postal address: PO Box 1748, Ermelo 2350<br />

Tel: +27 17 801 7000<br />

Fax: +27 17 811 1<strong>20</strong>7<br />

Email: records@gsibande.gov.za<br />

Website: www.gsibande.gov.za<br />

55 MPUMALANGA BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong> <strong>20</strong>17/18

INDEX<br />

INDEX<br />

Exxaro Resources............................................................................................................................... 13, 42<br />

Gert Sibande District Municipality........................................................................................... 38, 55<br />

Highveld Industrial Park ...........................................................................................................15,19, 21<br />

Industrial Development Corporation (IDC)............................................................................... 16<br />

Komati Basin Water Authority (KOBWA)...................................................................................... 36<br />

Komati Lowveld Chamber of <strong>Business</strong> and Tourism (KLCBT).........................................53<br />

<strong>Mpumalanga</strong> Economic Growth Agency (MEGA).........................................................7, OBC<br />

<strong>Mpumalanga</strong> Economic Regulator (MER) ................................................................................. 22<br />

MTN.......................................................................................................................................................................3<br />

Nedbank............................................................................................................................................. 5, 24, 51<br />

SA Airlink .......................................................................................................................................................IBC<br />

Sasol..................................................................................................................................................................IFC<br />

Transnet Pipelines..................................................................................................................................... 32<br />

MPUMALANGA BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />


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